The following information relates to Items 6, 7 and 8

Forecast Ltd has the following projected performance data for the year ahead:

Selling Price per unit 125

Variable Costs per unit 45

Total Fixed Costs 820,000

Item 6

What is the break even point in units for Forecast Ltd for next year?

Item 7

The Sales manager believes Forecast Ltd could increase sales by cutting the

projected sale price. If Forecast Ltd is targeting a before-tax profit of 216,000, then

what is the minimum sales price that can be achieved assuming sales of 14,000 units?

Item 8

What is the margin of safety percentage (to the nearest whole percentage point)

assuming Forecast Ltd charges the minimum sales price as computed in Item 7 and

achieves sales of 14,000 units?