a) Calculate the break-even point in units and revenue

b) Calculate the margin of safety in units and revenue

c) Calculate the number of installations needed to earn €50,000 profit

d) Calculate the installation price to be charged to ensure that the venture breaks even, if the number of installations falls to 1,600

e) Explain the term ‘contribution sales ratio’ (C/S ratio) and show how it is calculated

The contribution sales ratio or C/S ratio is simply the contribution divided by sales, multiplied by 100. If a C/S ratio of 45% is calculated it means that for every €100 in sales, contribution will on average amount to €45 with variable costs at €55. It is calculated as follows