(b)Product "DIY" sells for $50.00 per unit and the following information relates to the product.

Cost ItemUnit cost ( $ )

Direct materials10.00

Direct wages12.50

Variable manufacturing overhead2.50

Sales commission5.00

Fixed manufacturing overheads are $60,000 per year and fixed selling and administrative overheads are $72,000 per year.Budgeted sales for the forthcoming year is 3,000 units.

Required:

Calculate the following:-

(i)Break-even point in units

(ii)Contribution/Marginratio

(iii)Margin of safety in units at the budgeted sales level