04 Jun uestion 1)Swimkids is a swimsuit manufacturer
uestion
1)Swimkids is a swimsuit manufacturer. They sell swim suits at a selling price is $30 per unit. Swimkids variable costs are $18 per unit. Fixed costs are $81,900. Swimkids expects sales of $275,200 next year. What is Swimkids’s margin of safety (in dollars)?
Margin of safety = $70,450
2)Carry-ALL plans to sell 1,300 carriers next year and has budgeted sales of $46,000 and profits of $22,000. Variable costs are projected to be $20 per unit. Michael Co. offers to pay $21,400 to buy 540 units from Carry-ALL. Total fixed costs are $7,000 per year. This offer does not affect Carry-ALL’s other planned operations. The incremental revenues for this situation are
Incremental Revenue = $2,292
3)Bubba’s Steakhouse has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: Materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,680; depreciation, $600; and other fixed costs, $590. Each steak dinner sells for $13.60 each. How much would Shula’s profit increase if 10 more dinners were sold?
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