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Bramble manufactures and sells swimsuits for $40.00 each. The estimated income statement for 2017 is as follows: Sales Variable costs Contribution margin Fixed costs Pretax
Bramble manufactures and sells swimsuits for $40.00 each. The estimated income statement for 2017 is as follows: Sales Variable costs Contribution margin Fixed costs Pretax earnings $2,000,000 930,000 1,070,000 845,000 $225,000 Compute the contribution margin per swimsuit and the number of swimsuits that must be sold to break even. (Round contribution mar e.g. 125.) Contribution margin $L per swimsuit Break even swimsuits What is the margin of safety in the number of swimsuits? Margin of safety swimsuits Compute the contribution margin ratio and the breakeven point in revenues. (Round contribution margin ratio to 3 decimal places, Contribution margin ratio Breakeven point What is the margin of safety in revenues? (Round answer to 0 decimal places, e.g. 125.) Margin of safety Suppose next year's revenue estimate is $150,000 higher. What would be the estimated pretax earnings? Estimated pretax earnings Assume a tax rate of 30%. How many swimsuits must be sold to earn after-tax earnings of $200,000? (Round answer to 0 decimal pla Pretax profit swimsuits
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