Question 3 - Show calculations clearly: [10 marks] A factory manufacturing industrial machine parts has been established with the capacity to produce 500 machine parts per annum. The variable costs of each machine part is as follows: direct materials Dhs. 100, direct labour Dhs. 150 and direct overheads is 50% of direct labour. Each machine is sold for Dhs. 250. Fixed overheads are Dhs.12,000 per annum. a) Calculate: Break-even point in units Break-even point in sales revenue P/V ratio b) If the plant operates at 100% capacity as planned, calculate: Total contribution earned c) The plant is at present operating only at 60% of its capacity. Calculate its profit at this operating level. What is the margin of safety at this level? d) The management has set a target of achieving profit earnings of Dhs. 20.000. Calculate the sales revenue required to achieve this target e) If the company wants to earn sales revenue / volume of 25% above breakeven point. calculate: Total Contribution