Cost Volume Profit Analysis, Break Even

The launch of a new product is under consideration. Its unit variable costs will be £30 and it is estimated that incremental fixed costs of £250,000 will be incurred if production is commenced. Forecast sales are 50,000 units. At what level of price for the new product will the organization break even? If the actual planned selling price is £48 per unit, what will be the organization's margin of safety?

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