1. MRD Company is a distributor of a sun umbrella used at resort hotels. data concerning the next months budget appear below :

Items	Cost
Units	1000 units per month
Selling price ( S.P)	30$ /unit
Variable cost (V.C)	20$ / unit
Fixe cost (F.C)	7500/ month

a)Compute the companys margin safety in $

b) Compute the companys margin percentage

2. MRD Company is a distributor of a sun umbrella used at resort hotels.

Items	Cost
Selling price (S.P)	50$/unit
Variable cost (V.C)	30$ /Unit
Fixed cost (F.C)	180000$
Target profit	120000

a) Compute Contribution margin per unit (CM/unit)

b) Compute contribution margin ratio

c) Determine the number of the units must sell to break even point to achieve the target profit.

d) Determine the sales revenue required to earn the target profit.