Use the information provided below to answer the following questions independently:

3.1 Calculate the margin of safety (expressed in units).

3.2 Use the marginal income ratio to determine the break-even value if the direct manufacturing costs are $10 per unit more than expected.

3.3 Calculate the total Marginal Income and Net Profit/Loss if the sales volume for 2023 is 20% below the budgeted quantity.

3.4 Calculate the number of units that must be sold to earn a net profit of $150 per unit.

3.5 Calculate the break-even quantity if the selling price is reduced by $50 per unit and the fixed manufacturing costs decrease by $22 000

INFORMATION

The Sale Ltd manufactures and sells fishing rods for $600 each. The budgeted sales for 2023 are 22 000 rods and the costs are expected to be as follows:

Direct manufacturing costs per unit	$200
Variable manufacturing overheads cost per unit	$50
Variable administration costs per unit	$40
Sales commission	10% of sales
Fixed manufacturing costs	$1,800,000
Fixed administration and selling costs	$600,000