QUESTION 1

Clouds Kek Enterprise is a famous cake manufacturer in the northern region of Peninsular Malaysia. The company had sold 9,000 pieces of cakes at RM 70.00 per piece. The variable cost to make a piece of cake is RM 30.00 and the fixed cost for the company is RM 120,000 per year.

Required:

a)

(i) Determine the number of cakes that the company has to sell to achieve the break-e

(ii) Using the equation method, calculate the number of cakes that the company has to sell to gain a profit of RM 90,000.

(iii) Calculate the margin of safety in sales value (RM) and in percentage for the company.