QUESTION 5. Two businesses produce the same product. Relevant information is as follows:

Selling price per unit

Variable cost per unit

Fixed cost per month

Planned output (units)

Hawk Ltd 20 6 1,000

94

Osprey Ltd 20 8 1,000

108 concerning the performance of Hawk Ltd relative to

Margin of safety (in units) Higher Lower Higher

Lower

Which one of the following combinations is true

that of Osprey Ltd? Break even point

A Higher

B Higher

C Lower

D Lower