Answer the following question correctly. Answer all the parts given below. If you don't know the answer kindly don't solve.

Subject name is Cost accounting.

Hobbs Company produces one product for which following is information is available.

Product A $ per unit

Selling price 6.00

Direct Material 2.50

Direct Labor 1.40

Variable overhead 1.10

Total Fixed cost $ 120,000 per annum

Sales units 200,000 per annum

Required:

1. Calculate contribution margin per unit.
2. Calculate break even point in units.
3. Calculate break even point in sales value.
4. Calculate profit for the year based on total contribution.
5. Calculate Margin of safety in units and percentage of sales.