Mrs. Camelia owns a cake business and employs five employees at a monthly salary of RM2,000 per employee, with an additional commission of RM7.00 per cake sold. Other costs RM Rental RM1,600 per month Supplies RM0.60 for a cake RM650 per month RM254 per month and an additional RM0.40 for a cake. Maintenance Utilities Promotion and Advertisement RM600 per month The selling price is RM60.00 per cake. Required: a) Determine (CLO3, C3) the total fixed cost per month and the variable cost for a cake sold. b) Calculate (CLO3, C3) the break-even point in units and RM. c) If the selling price is increased by 10%, how many (CLO3, C3) cakes should be sold to achieve break-even point in units and RM? d) If the variable costs increased by RM2.00, how many (CLO 3, C3) cakes needed to be sold to earn a profit of RM18,000 a month? e) If changes in (c) and (d) are taken into account, how many (CLO 3, C3) cakes should be sold to achieve a profit of RM18,000?

Mrs. Camelia owns a cake business and employs five employees at a monthly salary of RM2,000 per employee, with an additional commission of RM7.00 per cake sold. Other costs RM Rental RM1,600 per month Supplies RM0.60 for a cake RM650 per month RM254 per month and an additional RM0.40 for a cake. Maintenance Utilities Promotion and Advertisement RM600 per month The selling price is RM60.00 per cake. Required: a) Determine (CLO3, C3) the total fixed cost per month and the variable cost for a cake sold. b) Calculate (CLO3, C3) the break-even point in units and RM. c) If the selling price is increased by 10%, how many (CLO3, C3) cakes should be sold to achieve break-even point in units and RM? d) If the variable costs increased by RM2.00, how many (CLO 3, C3) cakes needed to be sold to earn a profit of RM18,000 a month? e) If changes in (c) and (d) are taken into account, how many (CLO 3, C3) cakes should be sold to achieve a profit of RM18,000?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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