Alucamp is a company that produces and sells two types of camping chairs. The

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

Type Locarno Type Rimini

Direct material $$8$ $$5$

Variable Indirect material $$6$ $$3$

Fixed labor costs $$20$ $$23$

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.

$1.$ Calculate the budgeted fixed costs for $2014.$

$2.$ Calculate the breakeven point. The selling price for Locarno is $$57\mathrm{.}50$ and for Rimini it is $$39.$

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

$4.$ If the budgeted production and sales for Locarno is $3,600$ units and $5,400$ units for Rimini, calculate the variable costing profit.

$5.$ Calculate the safety margin.

$6.$ Suppose it is possible to increase the budgeted production and sales for $2014$ by implementing an advertising campaign. What might the cost of the campaign be in order to increase the profit?

$7.$ 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 constant selling price and sales.