4. Melto Company Ltd. Produces and sells a single product. Each unit is sold for $900, variable cost per unit is $225 and fixed costs for the year amounts to $1,350,000. During the coming year the company expects to sell 5,000 units. What is the margin of safety?

A. 2,000 units

B. 3,000 units

C. 4,000 units

D. 5,000 units

5. All the following are assumptions of CVP analysis EXCEPT:

A. constant sales mix

B. changes in technology

C. sales price is constant

D. costs are linear