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Sweet manufactures and sells swimsuits for $40.00 each. The estimated income statement for 2017 is as follows: Sales $2,000,000 Variable costs 980,000 Contribution margin 1,020,000
Sweet manufactures and sells swimsuits for $40.00 each. The estimated income statement for 2017 is as follows: Sales $2,000,000 Variable costs 980,000 Contribution margin 1,020,000 Fixed costs 820,000 Pretax earnings $200,000 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 What is the margin of safety in the number of swimsuits? Margin of safety swimsuits e Textbook and Media 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 ta What is the margin of safety in revenues? (Round answer to O decimal places, e.g. 125.) Margin of safety $ e Textbook and Media Suppose next year's revenue estimate is $200,000 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 $220,000? (Round answer to O decimal places, e.g. 125.) Pretax profit swimsuits
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