Hammoud would like to start practicing a commercial activity and went to the bank to borrow, and he presented to the bank the expected income statement for the first year of his activity, which came as follows:

Sales revenue= 300000 $ The quantity of sales is 20,000 units Variable industrial costs = $ 100,000 Fixed manufacturing costs = $ 50,000 Variable selling expenses = $ 30,000 Fixed selling expenses = $ 30,000 Variable administrative expenses = $ 10,000 Fixed administrative expenses = $ 60,000 Net profit = $ 20,000

Required: 1- Required: specify the break-even point in units, value and margin ratio with the comment. To get the result, use the accounting rule:

-Unit Breakeven Point = Total Fixed Costs / Unit Contribution Margin

-Breakeven point in value = Breakeven point in units * Sale price -Break-even Point = Total Fixed Costs / Unit Contribution Margin Ratio -Margin of Safety by Quantity = Target Actual Sales Quantity - Breakeven Sales Quantity -Margin of Safety in Value = Target Actual Sales Value - Breakeven Sales Value

-Safety Margin Ratio = Margin of Safety / Actual Sales Target

-Margin of Safety in Value = Target Actual Sales Value (Target Sales * Sales Price) - Equivalent Sales Value -Margin of safety in value = Margin of safety in quantity * Sale price