KABUBI Co ltd has recently developed a personal music player and is now considering what price to charge for the new product. A market research company has produced the following forecasts of demand at three potential selling prices:

Selling prices K100 K200 K300

Sales units/annum 10 000 8 000 6 000

Fixed costs/annum K80 000 K50 000 K20 000

Variable costs are forecast at K40 per unit at any activity level.

REQUIRED

Calculate for each,

the Break - even point in Units and in Revenue,

the Margin of Safety and

the budgeted profit (Targeted Profit)