CVP relation and profit planning, unit contribution margin approach (LO1, LO2). Clarissa sells her cupcakes for $2.50 each. Clarissa’s variable costs per cupcake equal $0.50 and her monthly fixed...

Clarissa sells her cupcakes for $2.50 each. Clarissa’s variable costs per cupcake equal $0.50 and her monthly fixed costs are $3,000.

Required:

a. What is Clarissa’s contribution margin per cupcake?

b. How many cupcakes does Clarissa need to sell each month to break even?

c. How many cupcakes does Clarissa need to sell each month to earn a monthly profit of $2,000?