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Question 2- Hobbs Company produces one product for which following is information is available. Product A $ per unit 6.00 Selling price Direct Material 2.50

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Question 2- Hobbs Company produces one product for which following is information is available. Product A $ per unit 6.00 Selling price Direct Material 2.50 Direct Labor 1.40 Variable overhead 1.10 Total Fixed cost $ 120,000 per annum Sales units 200,000 per annum Required: a) Calculate contribution margin per unit. (2.) b) Calculate break even point in units. (2) c) Calculate break even point in sales value.(2) d) Calculate profit for the year based on total contribution. (2) e) Calculate Margin of safety in units and percentage of sales. (2)

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