Q5.a) Explain what is meant by the term relevant range. (2 Marks)

b) A company produced 60,000 plastic bins that were sold for Shs 100 each in one accounting period. The company determined that the fixed manufacturing cost per unit was Shs 50 per bin. The company recorded a Shs 1,700,000 gross profit on its financial statements. Calculate: Variable cost per Unit and variable cost ratio Total Contribution Margin and contribution margin ratio The break-even sales in units and break-even sales in sales amount ill)

iv)

(16)

The margin of safety expressed as a percentage