Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Blossom Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2.450 units $40 per unit Sales price Variable costs Fixed

image text in transcribed
image text in transcribed
image text in transcribed
Blossom Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2.450 units $40 per unit Sales price Variable costs Fixed costs $20 per unit $29,400 Your answer is correct (a) What is the contribution margin ratio? Contribution margin ratio 50 Your answer is correct. (b) What is the break-even point in dollars? Break-even point 58800 Your answer is correct. (c) What is the margin of safety in dollars and as a ratio? Margin of safety $ 39200 Margin of safety ratio 40 % (c) What is the margin of safety in dollars and as a ratio? Margin of safety $ 39200 Margin of safety ratio 40 % Your answer is incorrect. (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 with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions