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Uniform BG Inc. is a company based in Blagoevgrad that makes uniforms. They normally sell 450 uniforms per month. Each uniform uses 3 meters of
Uniform BG Inc. is a company based in Blagoevgrad that makes uniforms. They normally sell 450 uniforms per month. Each uniform uses 3 meters of cloth which costs $2.5 per meter. Each uniform requires one and a half hour of labor, labor costs $4 an hour. Also the company uses a machine in its production, the depreciation of the machine is $200 per month. The rent is $1,000 and the supervisor salary is $1,500 per month. Each uniform is sold for $30. Required (15 points each): a) Create the contribution-format Income Statement based on the 450 uniforms. b) How many uniforms does Uniform BG Inc. need to sell to break even? c) If they would like to have a profit of $8,000, how many uniforms do they need to sell? d) What is the margin of safety as a percentage? What is Margin of safety, what do you understand by it? e) What is the operating leverage ratio of this company? Is that a good ratio? f) They are approached by Plovdiv Machines Ltd. to create 225 custom uniforms for their staff. In order to create them, they need to print the name of the company in each uniform which costs $0.50 per uniform. Fixed costs do not change! What is the minumum total price they would sell them for if they want to make at least $1,200 on this entire order
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