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  • £14+8+8=£30 per bear costs

    So it's £10 profit per bear if sold at £40

    (i) No idea what "planned contribution" is.

    (ii) 30,000 bears at £10 profit each is £300k. Minus the £120k fixed costs = £180k profit

    (iii) Break-even sales value would be enough profit (£10/bear) to cover the £120k fixed costs. So that's 12,000 sales required. The sales value of 12,000 bears is £480k.

    (iv) So that's £120k/£10 profit per bear = 12,000 bears to break even.

    (v+vi) No idea what "margin of safety" is in this context.

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