Electron Ltd manufactures and sells a telephone answering machine. The companys income statement for the most recent year is given below:
	Total	Per unit
Sales (20 000 units)	R1 200 000	R60
Less: Variable expenses	900 000	R45
Contribution margin	300 000	R15
Less: Fixed expenses	240 000
Net income	60 000
Calculate the companys contribution margin ratio.
Answer for part 1
Calculate the companys breakeven point in units
Answer for part 2
Calculate the companys breakeven point in rands
Answer for part 3
Assume that next year management wants the company to earn a minimum profit of R90 000. How many units will have to be sold to meet this target profit figure?
Answer for part 4
Calculate the companys margin of safety as a percentage.