a) You have been asked to compare the performance of two organisations based on their breakeven, profits and margin of safety. The performance of the FIRST organisation is as follows: Breakeven sales in units = 40,000+ Breakeven sales in dollars = $6 million+ Profit currently made based on sales of 55,000 units = $1,140,000+ Margin of safety = 15,000 units Margin of safety in $ = $2.25 million+ L You are required to calculate the SECOND organisation's performance in terms of its breakeven sales in S, current profit made in $ and the margin of safety in $ with the following information: SECOND Organisation Expected sales in units+ Expected selling price per unit + Raw material per unit 35,000 $200 t $55 Direct labour per unit $45 Other variable costs per unit $20 Insurance and Advertising $160,000 Rent Salaries Depreciation Electricity: Line charges $10,000 per annum + usage of $10 per unit sold Water charges: Fixed water charge $5,000 per annum + usage of $5 per unit sold Telephone and internet charges: Line charges of $12,000 per annum + usage of $3 per unit sold Required a) $75,000+ $650,000 $68,000 t 2 . . 1. 1. 1. 1. 1. 1. '+ . Which organisation (FIRST or SECOND) has a higher breakeven, profit and margin of safety in $? Provide supporting calculations with a table showing the total contribution margin and total profits made by SECOND organisation. All workings must be shown.