Question
Blossom Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2000 unit Sales Price $30 per unit Variable costs $18
Blossom Bucket Co., a manufacturer of rain barrels, had the following data for 2019.
Sales | 2000 | unit |
Sales Price | $30 | per unit |
Variable costs | $18 | per unit |
Fixed Costs | $11520 |
A. What is the contribution margin ratio? Contribution margin ration: ______%
B. What is the break-even point in dollars? Brak-Even Point: $
C. What is the margin of safety in dollars and as a ratio? Margin of Safety: $ Margin of Safety: ___%
D. If the company wishes to increase its total dollar contribution margin by 30% in 2020, by how much will it need to increase its sales if selling price per unit, variable price per unit and total fixed costs remain constant? Total increase in sales required: $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started