Motormusic Ltd makes a standard model of car radio, which it sells to car manufacturers for 60 each. Next year the business plans to make and sell 20,000 radios. The business's costs are as follows: Manufacturing Variable materials Variable labour Other variable costs Fixed costs Administration and selling 20 per radio 14 per radio 12 per radio 80,000 per year Variable Fixed 3 per radio 60,000 per year Required:

(a) Calculate the break-even point for next year, expressed both in quantity of radios and sales value.

(b) Calculate the margin of safety for next year, expressed both in quantity of radios and sales value.AppendixLO1