... (20 + 14 + 12 + 3)] = 12 ,72 7 radios.These would have a sales value of 76 3,620 (that is, 12 ,72 7 × £60).(b) The margin of safety is 7, 273 radios (that is, 20,000 − 12 ,72 7). This margin would havea ... 5,400(production and sales)££ £Sales revenue 25,000 27, 000 26,460Raw materials (7, 500) (8,100) (2 ,70 0 kg) (8 ,77 0) (2,830 kg)Labour (6,250) (6 ,75 0) ( 675 hr) (6,885) (650 hr)Fixed overheads (6,000) ... profitof output volume differences. 7. 3 7. 2 7. 1Chapter 7 6.46.36.2SOLUTIONS TO REVIEW QUESTIONS 475 Z03_ATRI3622_06_SE_APP3.QXD 5/29/09 10:43 AM Page 475 If a cost-plus approach to pricing...