Question 1. Motormusic Ltd makes a standard model of car radio, which it sells to car manufacturers for 60 each car radio. For next year, the business plans to make and sell 20,000 radios. The businesss costs are as follows:

Variable costs 50 per radio Fixed costs 140,000 per year

Required: 1. Calculate the break-even point for next year, expressed both in quantity of radios and sales value. 2. Calculate the margin of safety for next year, expressed both in quantity of radios and sales value