International Printer Machines (IPM) builds three computer printer models: Alpha, Beta, and Gamma. Information for these three products is as follows: Alpha Beta Gamma Total Selling price per unit $250 $400 $1 500. Variable cost per unit $80 $200 $800 Expected unit sales (annual) 12,000 6,000 2,000 totla 20,000 Sales mix 50 percent 40 percent 10 percent total100 percent

Total annual fixed costs are $5,000,000. Assume the sales mix remains the same at all levels of sales.

Required: a) weighted average unit contribution margin, assuming a constant sales mix.

b) How many units of each printer must be sold to break even?

( c) i) Explain what is margin of safety

ii) Calculate in sales units the margin of safety for IPM, assuming projected sales are 25,000 units?