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12. Cyan Ltd are considering the feasibility of a new product and you are provided with the following information. Fixed costs Unit selling price 90,000

12. Cyan Ltd are considering the feasibility of a new product and you are provided with the following information. Fixed costs Unit selling price 90,000 18 Unit variable cost 6 Requirement: (a) Calculate the break-even point in units and sales revenue [3 marks] (b) If the target is a 40,000 profit, calculate the volume required in units and total sales revenue [3 marks] (c) What profit or loss would result if 12,000 units are sold? [3 marks] (d) (e) If 11,000 units are expected to be sold, what is the margin of safety? [3 marks] What selling price would have to be charged to give a profit of 125,000 on sales of 40,000 units, fixed costs of 95,000 and variable costs of 5 per unit? [3 marks]

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