1) CAPRICORN SA manufactures office desks. The following information relates to the costs and revenues associated with the production of 10,000 desks: Per Desk Direct Materials (DM) 3 Direct Labour (DL) 18 Semi-variable Costs (SVC) 9 Fixed Costs (FC) Profit 4 26 Selling Price 60 Calculate: a) The break-even level of production and sales b) The margin of safety