2 The margin of safety may be defined as. a) Difference between sales and breakeven point sales b) Extent to which sales revenue exceeds fixed costs c) Excess of planned sales over actual sales d) Point at which breakeven point sales are achieved 3 A company has fixed costs of GHS40,000. The selling price is GHS12.50 with a variable cost of GHS7.50 per unit. The breakeven point in units is a) 3,200 b) 8,000 c) 5,333 d) 2,000 4 Afrm has a selling price of GH512.95 per unit with an average variable cost of GHS5.44. Fixed costs are GHS140,000. The variable cost percentage is a) 42% b) 40% - 24% d) 30% 5 A has a contribution to sales ratio of 40%. Fixed costs amount to GI 1590,000. The units required to break even is a) 3,000 b) 4,500 c) 225,000 d) impossible to calculate without further information 6 Sales are GHS500,000, variable costs are GHS200,000, and fixed costs are GH5240,000. The contribution to sales (C/S) ratio will be a) 40% b) 43% c) 52% d) 60%