Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bank Strategy, Governance And Ratings

Authors: P. Molyneux

3rd Edition

0230313345, 9780230313347

More Books

Students also viewed these Accounting questions

Question

What are the three categories of time? (p. 291)

Answered: 1 week ago

Question

a. Did you express your anger verbally? Physically?

Answered: 1 week ago