4. Cole Ltd sells 45,000 units each year. The budgeted profit statement for next year is as follows: $ Sales (45,000 units at $37.50) $ 1,687,500 Direct materials 360,000 Direct labor 270,000 Variable production overhead 180,000 Fixed production overhead 133,500 (943.500) Gross profit 744,000 Variable selling costs 90,000 Fixed selling costs 60,000 Net profit (150,000) 594,000 Required: Based on the budgeted figures above, calculate: The margin of safety expressed as a percentage of sales revenue. (i) The sales revenue needed to break-even. (11) 111 The number of units that would have to be sold to earn a profit of $28,000. Activate W Go to Settings