BallardLtdmanufacturesasingleproduct(PRx12).Unitcostandrevenuedataforthe product is provided below.

Sellingprice	43.80
Variable costs	25.20
Contribution	18.60

Fixedcostsare185,780permonth.

The currently level of activity is 12,000 units per month. This activity level represents 80% of current production capacity

Required:

a.Calculate:

1. Thecontribution/salesratio(C/S%)

1. Theproductbreak-evenpoint(in unitsandssales)

1. Thelevelof sales(inunitsands)requiredtoproducedprofitsof12,000

1. Thecurrentmarginofsafety(inunitsand s)

1. Thecurrentproductioncapacity(in units)

1. Thesellingpriceofthesparecapacityrequiredtoproducetotalprofitsof

40,000