Selling price $100

The estimated Marginal Cost of production is $60

Fixed costs will be $ 4,000 per month

a) Calculate the projected profit/loss for the months for sales of

I) 500 Units

ii) 200 Units

iii) 50 Units

b) Calculate the sales revenue required to earn a projected profit of $ 5,000

c)Calculate the projected profits at sales of $ 30,000

d) Calculate the margin of safety in value terms and units for sales of 400 units

e) Calculate a projected breakeven point if the sales price is reduced by 10%

f) Discuss the advantages and disadvantages of using Break-even analysis/CVP analysis