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