Question 1 A.A Ltd has fixed costs of 60,000 per annum. It manufactures a single product which it sells for 20 per unit. Its contribution to sales ratio is 40 per cent. A Ltd.s breakeven point in units is: a) 1,200 b) 3,000 c) 5,000 d) 7,500. B. C Ltd manufactures a single product which it sells for 9 per unit. Fixed costs are 54,000 per month and the product has a variable cost of 6 per unit. In a period when actual sales were 180,000, B Ltd.s margin of safety, in units, was: a) 2,000 b) 14,000 c) 18,000 d) 20,000. C. For the forthcoming year, E plcs variable costs are budgeted to be 60 per cent of sales value and fixed costs are budgeted to be 10 per cent of sales value. If E plc increases its selling prices by 10 per cent, but if fixed costs, variable costs per unit and sales volume remain unchanged, the effect on E plcs contribution would be: a) a decrease of 2 per cent. b) an increase of 5 per cent. c) an increase of 10 per cent. d) an increase of 25 per cent.