Question: a) Break Even Points = Fixed Cost / (Selling Price - Variable Cost) = 100000 /(1-0.20) =125000 Bottles. b) Required sales =( Fixed cost +

a) Break Even Points = Fixed Cost / (Selling Price - Variable Cost) = 100000 /(1-0.20) =125000 Bottles.

b) Required sales =( Fixed cost + Target profit) / Contribution margin per unit = (100000+15000) /0.8=143750

c) Margin Of Safety= Actual sales units - Break even in units = 200000-125000=75000

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