Q3. The following information relates to two products of ABC clothing Inc.

Warm Cozy

Selling price per unit $8 $12

Variable expenses

per unit $2 $6

Fixed costs $2,250 $2,250

Number of pairs sold 600 units 200 units

Required- (20 marks)

a) Calculate Break even sales in dollars for both the products and analyse which is more and better.

b) Calculate Break even sales in units for both the products and analyse which is more and better.

c) Calculate margin of safety of both products