Contribution Margin Concepts The following information is taken from the 2017 records of Hendrix's Guitar Center. Fixed Variable Total $1,875,000 Sales Costs Goods sold Labor Supplies Utilities Rent Advertising Miscellaneous Total costs Net income 843,750 $400,000 150,000 5,000 12,500 30,000 32,500 60,000 15,000 61,250 15,000 25,000 $525,000 $1,125,000 (1,650,000) $225,000 Required (a.) Determine the annual break-even dollar sales volume. Contribution margin ratio: Annual break-even dollar sales volumes: $ (b.) Determine the current margin of safety in dollars. (d.) What is the annual break-even dollar sales volume if management makes a decision that increases fixed costs by $80,000