Sparkle produces one product, the Esprit.

During the year ended 31 December 2013, the company produced 15000

units of Esprit and incurred the following total costs:

Direct materials $90 000

Direct labour $67 500

Variable production overhead $45 000

Fixed production overhead $60 000

Other fixed overheads $25 000

Each Esprit is sold for $26.00

Calculate the contribution, break even point and margin of safety.