One of the products that Cooper Ltd manufactures is known as Product (B). Unit cost and revenue data for the product is provided below.

	£
Selling price	30.00
Variable costs	10.50
Contribution	19.50

Fixed costs are £70,000 per month.

Last month the business produced and sold 7,200 units. This activity level represents 80% of current production capacity.

Required:

Calculate contribution / sales ratio (C/S %)

Calculate product break-even point (in units and £s sales)

Calculate the level of sales (in units and £s) required to produced profits of £82,000.

Calculate current production capacity (in units)

Calculate margin of safety (in units and £s)

Calculate total business profits if all spare capacity were to be sold for £20 per unit.

Show all workings.