$3-36$ CVP analysis. Alucamp is a company that produces and sells two types of camping chairs. The

following manufacturing costs are given for the year $2014$:

The variable selling costs are $$6$ per unit for both types of product. The fixed selling costs are $$7$ per unit for

both Locarno and Rimini. The normal production and sales are $4,000$ units of Locarno and $6,000$ units of Rimini

per year. Assume that the production and sales of the products are related to each other and conform to the

ratio at normal occupation.

HAPTER $3$ COST$-$VOLUME$-$PROFIT ANALYSIS

Calculate the budgeted fixed costs for $2014.$

Calculate the breakeven point. The selling price for Locarno is $$57\mathrm{.}50$ and for Rimini it is $$39.$

If the budgeted production and sales for Locarno is $3,600$ units and $5,400$ units for Rimini, calculate the

absorption costing profit.

If the budgeted production and sales for Locarno is $3,600$ units and $5,400$ units for Rimini, calculate the

variable costing profit.

Calculate the safety margin.

Suppose it is possible to increase the budgeted production and sales for $2014$ by implementing an adver$-$

tising campaign. What might the cost of the campaign be in order to increase the profit?

Let go of the possibility of Question $6.$ Suppose the required profit for $2014$ is $$90,000.$ Calculate:

a$.$ the percentage increase in sales at constant selling prices.

b$.$ the percentage increase in selling prices at constant sales.

c$.$ the gross margin percentage, to achieve by better purchase policy and improved efficiency at con$-$

stant selling price and sales.