5.

The industrial company Bragenes Industri AS produces one product and has set up the following cost calculation per unit:

Sales price 140,000

Direct material 40,000

Direct salary 30,000

Indirect variable costs 15,000

Indirect fixed costs 31,000

Cost 116,000

Profit 24,000

The calculation is based on a normal production of 100 units per period. The fixed costs are operationally independent within the production capacity of 150 units.

a. Calculate the coverage of the product.

b. Calculate the company's zero point turnover.