Question 4 Kuapa Ltd manufactures and sells a single product which has the following cost and selling price structure: GH per unit GHe per unit Selling price 150 Direct material 40 Direct Labour 25 Variable Overhead 35 Fixed Overhead 20 120 30 Profit per unit The fixed overhead absorption rate is based on the normal capacity of 2,500 units per month. Assume that the same amount is spent each month on fixed overheads. Budgeted sales for the next month are 3,000 units. You are required to calculate a) The breakeven point in sales units and value b) The margin of safety for the next month in units and percentage c) The contribution to sales ratio d) The budgeted profit for the next month e) The sales required to achieve a targeted profit of 150,000 Draw a breakeven chart to showing the revenue line, variable and fixed cost line, breakeven point in value and in units, margin of safety, profit and loss