The following data refers to a single product business:

- Direct labor per unit $12

- Direct materials per unit$18

- Variable overhead per unit $5

- Fixed costs $200,000

- Sale price $45

- The maximum capacity of the factory is 30,000 units

Required

1. Construct a break-even chart using this data

2. Identify the break-even point and the break-even level of production.

3. Identify from the graph the expected gain at full capacity.

4. Calculate the margin of safety at a starting level of 25,000 units.