Breakeven, target profit, margin of safety Vines and Daughter manufactures and sells swimsuits for $40 each. The estimated income statement for 2005 is as follows: Sales Variable costs Contribution margin Fixed costs Pretax profit $2,000,000 1,100,000 900,000 765,000 $ 135,000 A. Compute the contrbunun margin per swimsuit and the number of swimsuits that must be sold to break even. B. What is the margin of safety in the number or swimsuits? C. Suppose the margin of safety was 5,000 swimsuits in 2004. Are operations more or less risky in 2005 as compared to 20042 Explain. D. Compute the contribution margin ratio and the breakeven point in revenues. E. What is the margin of safety in revenues F. Suppose next year's revenue estimate is $200.000 higher. What would be the estimated pretax profita G Assume a tax rate of 309. How many swimsuits must be sold to earn an after-tax profit of $180,0002