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Coronado manufactures and sells swimsuits for $40.00 each. The estimated income statement for 2017 is as follows: Sales $2,000,000 Variable costs 960,000 Contribution margin 1,040,000

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Coronado manufactures and sells swimsuits for $40.00 each. The estimated income statement for 2017 is as follows: Sales $2,000,000 Variable costs 960,000 Contribution margin 1,040,000 Fixed costs 830,000 Pretax earnings $210,000 (a) Compute the contribution margin per swimsuit and the number of swimsuits that must be sold to break even. (Round contribution margin per swimsuit to 2 decimal places, e.g. 15.25 and break even swimsuits to O decimal places, e.g. 125.) $ Contribution margin per swimsuit Break even swimsuits e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b) What is the margin of safety in the number of swimsuits? Margin of safety swimsuits e Textbook and Media (d) Compute the contribution margin ratio and the breakeven point in revenues. (Round contribution margin ratio to 3 decimal places, e.g. 0.256 and breakeven point to O decimal places, e.g. 125.) Contribution margin ratio Breakeven point $ e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (e) What is the margin of safety in revenues? (Round answer to 0 decimal places, e.g. 125.) Margin of safety $ e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (f) Suppose next year's revenue estimate is $180,000 higher. What would be the estimated pretax earnings? Estimated pretax earnings $ (g). Assume a tax rate of 30%. How many swimsuits must be sold to earn after-tax earnings of $240,000? (Round answer to 0 decimal places, e.g. 125.) Pretax profit swimsuits e Textbook and Media Save for Later Attempts: 0 of 3 used Submit

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