A bakery sells loaves at P10. Fixed costs are P4 000 a month and the variable cost is P6 per loaf. It sells 1 500 loaves a month.

1. (a) Calculate the break-even output. [2]
2. (b) Calculate the monthly profit. [2]
3. (c) Calculate the margin of safety. [1]
4. (d) Give one limitation of break-even analysis. [1]

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