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Ahmed Company ses several products Information on average revenue and costs is as follows: Selling price per unit $20.00 Variable costs per unit: Direct material

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Ahmed Company ses several products Information on average revenue and costs is as follows: Selling price per unit $20.00 Variable costs per unit: Direct material $5.00 Direct manufacturing labor $1.50 Manufacturing overhead $2.50 Selling costs $3.00 Total variable cost per unit $12.00 Total annual fixed costs $100,000 Required: a. Calculate the number of units that Ahmed Company must sell each year to break-even. (2 Marks) b. Calculate the number of target units that must be sold for the year to earn an operating profit amounting $30,000 (2 Marks) c. Calculate the total sales amount for the year to earn an operating income amounting $20,000. (2 Marks) d. Calculate the margin of safety ratio iftarget operating income is $30,000.(1 Mark)

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