Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Discuss the Hawthorne experiments in detail

Answered: 1 week ago

Question

Explain the characteristics of a good system of control

Answered: 1 week ago

Question

State the importance of control

Answered: 1 week ago

Question

What are the functions of top management?

Answered: 1 week ago