The following profit statement has been prepared in respect of a sales value of $ 6,000,000.

	%	%
Sales Direct materials Direct labor Variable Production Overheads Fixed Production Overheads Other Variable Costs Other Fixed Costs Profit	20 35 15 10 4 6	100 90 10

The unit selling price, unit variable costs and total fixed costs are expected to remain the same over a sales range of $ 4,000,000 to $ 7,000,000.

Required:

(a) Profit statement (showing contribution) for a sales budget of $ 5,000,000. (b) Calculate the profit for sales of $ 4,800,000.

(c) Calculate the margin of safety for the sales in (a).