Q.3 Calm Ltd manufactures and sells only one product. The product is sold at K10 per unit. Other details are as follows: Variable cost per unit 5 Fixed cost per month K20 000 Normal sales per month 6 000 units Required: a. Calculate the contribution per unit and the contribution ratio (P/V ratio). (3 marks) b. Calculate the break-even point in units and in sales value (K). (3marks) C. Calculate the margin of safety and the margin of safety ratio. (4 marks) d. Draw a break-even graph which clearly indicates the break-even point. (4 marks) e. Suppose the variable cost increases to K6 per unit and the fixed cost decreases to K18 000. i. Calculate how many more units have to be sold in order to break-even. ii. Calculate the number of units to be sold in order to earn a net profit of K7 500 per month. (6 marks)