The Pasuda Porcelain Company is about to launch a new luxury tableware range. The selling price for a set will be £90. To make the range the company has invested £319,000 in new equipment. Variable production costs will be £35 per set.
(a) What number of sets must they sell to break even?
(b) What profit will they make if they sell 6000 sets, and what is their margin of safety?
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