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Biomed Pte Ltd produces a variety of syringes for the medical industry. One department makes a special syringe. The projected

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Answer #1

Contribution margin per unit= total contribution/number of units

=150000/150000

=$1

Breakeven point in units= total fixed cost/contribution margin per unit

= 105000/1 = 105000 units

Contribution margin ratio= contribution margin per unit/selling price

= 1/4 = 25%

Break-even sales= break-even point in units* selling price per unit

= 105000*$4

= $420,000

Margin of safety= (actual sales-break-even sales)/actual sales *100

=(600000-420000)/600000   * 100

=30%

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