1. The budgeted annual output of a factory is 120 000 units. The fixed overheads amount to $40 000 and the variable costs are 50c per unit. The sales price is $1 per unit.

Required:

1. Calculate contribution margin percentage
2. Calculate the breakeven sales
3. Profit margin
4. What is the margin of safety percentage
5. Construct a break-even graph showing the current break-even point and profit earned up to the present maximum capacity