Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

type using computer 3A. LOVE Enterprise is a seller of cupcakes. The variable cost is RM4 per unit and the fixed cost is RM800 for

type using computer

image text in transcribedimage text in transcribed

3A. LOVE Enterprise is a seller of cupcakes. The variable cost is RM4 per unit and the fixed cost is RM800 for a month. A cupcake is sold at RM12. Required: (a) Briefly explain the importance of cost-volume-profit analysis for a business. (7 marks) (b) Calculate the contribution margin for a unit of cupcake. (3 marks) (C) Determine the number of cupcakes need to be sold to achieve break-even point. (3 marks) (d) Determine the number of cupcakes that need to be sold to achieve the target profit of RM2,000 for a month. (3 marks) 1 - B I E Answer for question 3A: 3B. LOVE Enterprise is a seller of cupcakes. The variable cost is RM4 per unit and the fixed cost is RM800 for a month. A cupcake is sold at RM12 Required: (e) Determine the number of cupcakes that need to be sold to achieve break-even point, if the selling price is reduced by RM1. 13 marks) (1) Determine the number of cupcakes that need to sold to achieve break-even point, if the fixed cost increases by RM200. Assume the selling price is at RM12 and variable cost is at RM4 per cupcake. (3 marks) (g) Determine the number of cupcakes that need to be sold to achieve break-even point, if the variable cost decreases by RM1. Assume the selling price is at RM12 and fixed cost is at RM800. (3 marks A I You werer (e)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Quality Auditing

Authors: Denis Pronovost

1st Edition

0873894766, 9780873894760

More Books

Students also viewed these Accounting questions