The following data relate to a single-product business:

- Direct labour per unit $12

- Direct materials per unit$18

- Variable overheads per unit $5

- Fixed costs $200,000

- Selling price $45

- Maximum capacity of the factory is 30,000 units

1. Construct a break-even chart using these data

2. Identify the break-even point and the break-even level of output.

3. Identify from the graph the profit expected at maximum capacity.

4. Calculate the margin of safety at an output level of 25,000 units.