You are provided with the following information for a business:

Revenue. Pounds 1,000,000

Fixed costs Pounds 200,000

Variable costs Pounds 300,000

The business's contribution margin is:

Select one:

a) 80 percent

b) 70 percent

c) 500,000 Pounds

d) 700,000 Pounds

Fashion First manufacturers pants for working professionals. Every pair of pants costs 3 Pounds in raw material. Workers are paid 3 Pounds for every pair manufactured. These pants are then sold for 10 Pounds each. Fashion First incurs a fixed cost of 2,000 Pounds per month.

Is it true or false to say that Fashion First must sell 500 pairs of pants a month to break even?

Marvellous manufacturers would like to earn a profit of 10,000 Pounds per month. They currently spend 3,000 Pounds per month on fixed costs. They incur variable costs of 5 Pounds per unit sold and sell their products at 12 pounds each. What is the amount of sales that Marvellous Manufacturing must make per month in order to achieve their target profit.

Select one:

a) 22,286 Pounds

b) 12,000 Pounds

c) 7,000 Pounds

d) 1,857 Pounds