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The following information relates to questions 4-8: Mick the Heat produces gas safety certificates for landlords. He visits rental properties and certifies them if they

The following information relates to questions 4-8:

Mick the Heat produces gas safety certificates for landlords.
He visits rental properties and certifies them if they meet current gas safety
regulations. Mick charges 75 per visit, which includes any products required.

The variable costs of each visit are about 15.

Question 4
What is the expected contribution from each client visit?

A 10
B 33
C 40
D 60
Question 5
How many client visits per month will Mick have to make in order to break even?

A 33
B 42
C 75
D 167
Question 6
If Mick expects to be able to complete 5 client visits per day, and wants to work for 20 days per month, what is his expected margin of safety, in units, per month?

A 25
B 58
C 78
D 100
Question 7
If Mick works according to his plan, as outlined in Q.6, what will be his monthly profit?
A 7,500
B 6,000
C 3,500
D 1,500

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