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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

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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 Tipe Loceamo Type Rli Direct material Variable Indirect material Fixed labor costs Total manufacturing costs $8 $6 $20 $34 $5 $3 $15 $23 13 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 u nits of Locarno and 6,000 units of Rimini all unrts 10,000 per year Assume that the production and sales of the products are related to each other and conform to the ratio at normal occupation.) dont need 14 14-:15 1. Calculate the budgeted fixed costs for 2014. Fixed lobor t tied selina -5-3 2. Calculate the breakeven point. The selling price for Locarno is $57.50 and for Rimini it is $39. 1.5-variable 85 3. If the budgeted production and sales for Locarno is 3,600 units and 5,400 units for Rimini, calculate the absorption costing profit. 3 boo 375-( 34 +13) y3hoo 4 If the budgeted production and sales for Locarno is 3,600 units and 5,400 units for Rimini, calculate the PPT 29 variable costing profit. riah 5. Calculate the safety margh. sofe margybuyted -boskeven sols 6. 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 proft a. the percentage increase in sales at constant selling prices 7. Let go of the possibility of Question 6. Suppose the required profit for 2014 is $80,000 Calculate: 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

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