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Contribution Margin Concepts The following information is taken from the 2017 records of Hendrix's Guitar Center. Sales Fixed Variable Total Costs Goods sold 607,500 Labor
Contribution Margin Concepts The following information is taken from the 2017 records of Hendrix's Guitar Center. Sales Fixed Variable Total Costs Goods sold 607,500 Labor $288,000 108,000 Supplies 3,600 9,000 Utilities 21,600 23,400 Rent 43,200 0 Advertising 10,800 44,100 $1,350,000 Miscellaneous 10,800 18,000 Total costs $378,000 $810,000 (1,188,000) Net income $ 162,000 Required (a.) Determine the annual break-even dollar sales volume. Contribution margin ratio: 0 Annual break-even dollar sales volumes: $ 0 (b.) Determine the current margin of safety in dollars. $ 0 (c.) What is the annual break-even dollar sales volume if management makes a decision that increases fixed costs by $55,000? $ 0
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