Dragon Ltd produces one type of furniture set and the details per month are as follows:Selling Price: £3,400Variable cost per unitmaterial and other costs £1,600Fixed cost per month £774,000Budgeted production/sales per month
A. Calculate profit or loss expected if budget of selling 750 units is to be achieved.B. Calculate how many units need to be sold per month in order to achieve break even pointC. If shop aims to make a profit of £630, 000 per month, how many units should be sold per month.D. Calculate margin of safety in units as well as percentage terms.
Bravo Ltd provides a single standard service. The business’s results for the pasttwo months are as follows:
April MaySales  2,200 2,800Sales revenue (£) 198,000 252,000Operating profit (£) 28,000 52,000
There were no changes, of any description, in selling prices or costs over the two months.
Required:A. Given the total cost and activity levels in terms of sales units per each month, identify variable and fixed cost using high-low method.B. What is the break-even point for the business’s activities?C. Calculate contribution margin ratio %.D. Calculate margin of safety for each month in units as well as percentage terms.

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