Mansure Ltd makes a standard product, which it sells to the public for 100 each. Next year the business plans to make and sell 8,000 products. The business's costs are as follows:

Manufacturing

Variable materials 25 per product

Variable labour 17 per product

Other variable costs 14 per product

Fixed cost 120,000 per year

Administration and selling

Variable 4 per product

Fixed 60% of manufacturing fixed cost

Required:

1. 1. calculate the break-even point in quantity of product; (3 marks)
   2. calculate the break-even point in sales revenue; (3 marks)
   3. the contribution to sales ratio; (3 marks)
   4. the margin of safety in quantity of product; (3 marks)
   5. the margin of safety in sales revenue; (3 marks)
2. Label the break-even chart below (5 marks)