Nestl SA needs to analyze the cost structure of its new product line. The following information is available: Cost Item Fixed Cost ($) Variable Cost

Nestlé SA needs to analyze the cost structure of its new product line. The following information is available:

Cost Item	Fixed Cost ($)	Variable Cost per Unit ($)
Direct Materials	0	5
Direct Labor	0	3
Manufacturing Overhead	50,000	2
Selling Expenses	20,000	1
Administrative Expenses	30,000	0

The expected production level is 10,000 units.

Required:

1. Prepare a cost sheet showing the total cost and cost per unit.
2. Calculate the break-even point in units.
3. Determine the margin of safety in units and dollars.
4. Analyze the impact on profit if production increases by 15%.