Question 3 A summary of a manufacturing company's profit statement for its financial year, when it is operating at 80% of capacity is given below. 320,000 60,000 Sales 10,000 units Less Direct materials Direct wages Production overhead Fixed Variable 80,000 42,000 20,000 202000 Gross profit ? Admin selling distrition cost Wed with WPS Office Fixed Varying with sales volume 36,000 30,000 66,000 2 Net profit Required a) Establish the Break Even point b) What is the Variable cost of the company at the breakeven point Management plans to operate at full capacity, estimate the margin of safety of the company