1. The following information is available in respect of Bingo Limited:

Fixed costs 60,000 per annum

Selling Price 20 per unit

Variable Cost 10 per unit

Relevant Range 4,000 -12,000 units

Budgeted Sales 10,000 units per annum

REQUIREMENTS:

2. Calculate the break-even point in (i) units (ii) revenue (iii) contribution per unit.
4. Calculate the absolute margin of safety in (i) units (ii) revenue.
6. Calculate the percentage margin of safety in respect of budgeted sales.
8. Calculate the number of units which must be sold in order to generate a 20,000 profit.