The costs of production for 3000 units are 25,000 (variable) and 13000 (fixed), and the units are

all sold for 50,000.

Q11 The break even point is:

A 850 units

B 1560 units

C 1267 units

D 1100 units

Q12 The margin of safety as a percentage of the break even number is:

A 50%

B 63%

C 92%

D 35%

Q13 If the fixed costs were to increase by 5000, and the variable cost to fall by 20%, the new

break even point would be:

5 | P a g e

A 1404 units

B 1500 units

C 1267 units

D 1800 units