Colin Xiao runs a restaurant which serves 10,000 customers a month. Each customer spends £20, variable costs per customer are £15. Fixed costs are £10,000.

Required:

(i) What are the current break-even point and margin of safety in £s?

(ii) Calculate the new break-even point and margin of safety in £s if the average spend per customer is:

(a) £17

(b) £19

(c) £25 Assume all other factors remain the same.