Selling Price per unit $20.00

Direct Material Cost per unit $6.50

Direct Labour Cost per unit $5.50

Fixed Overheads per month $16,800

Budgeted units 10,500

a) Calculate the unit contribution for product XYZ.

b) Calculate the break-even point for product XYZ.

c) Calculate the margin of safety as a %

d) Calculate how many units of product XYZ must be sold to make a profit of $12,000.

e) If overheads increase by $5,000, how many extra units of product XYZ will the company need to sell to break even?