Oak Bucket Co., a manufacturer of wood buckets, had the following data for 2013:

Sales 2,600 units Sales price $40 per unit Variable costs $16 per unit Fixed costs $19,500 Instructions

(a) What is the contribution margin ratio?

(b) What is the break-even point in dollars?

(c) What is the margin of safety in dollars and as a ratio?

(d) If the company wishes to increase its total dollar contribution margin by 30% in 2014, by how much will it need to increase its sales if all other factors remain constant?

AppendixLO1