2. Use the following information to answer the below question: ed TOTAL out of COST PER% UNIT Sales (5 000 units) R275 000R55 100 on Less: Variable cost R220 000 R44 80 Contribution margin R55 000 R11 20 Less: Fixed cost R50 000 Net profit R5 000 How much will the margin of safety in units be? Select one: A. 455 units B. 500 units O C. 1333 nits D. 450 units 3 A margin of safety ratio of 45% and break-even sales of 66 000 units imply sales of d out of Select one: a. 60 000 units b. 120 000 units c. 29 700 units d. 36 300 units 4 The target profit in units is the number of units that must be sold so as to recover all fixed costs. It is the point at which no profit or loss is incurred. ed out of Select one: O True 3 an 0 False 25 ed The following information is provided concerning the production of Mims Sweets: Selling price - R6 per unit Variable production cost - R1.20 per unit out of e on Variable selling cost - R0.40 per unit Fixed production cost - R4 per unit Fixed selling cost = R0.80 per unit Annual budgeted production and sales for the year are 10 000 units. What is Mims Sweets' breakeven point? o Select one: a. 8 000 units b. 10 000 units C. 10 909 units d. 8 333 units .6 Use the following information to answer the below question: ed TOTAL out of COST PER% UNIT Sales (5 000 units) R275 000 R55 100 9 on Less: Variable cost R220 000 R44 80 Contribution margin R55 000 R11 20 Less: Fixed cost R50 000 Net profit R5 000 How much is the break-even point in units (nearest whole number)? Select one: O A. 4545 units B. 4554 units O C. 3667 units D. 4000 units 7 CVP analysis is: d Select one: out of O A. an organising tool used by service companies O B. a decision-making tool that helps management draw up the income statement en C. a decision-making tool that helps management determine the effects that changes in cost, price, quantity and mix will have on future profits O D. not a decision-making tool