Determine contribution margin ratio, break-even point in dollars, and margin of safety.

Felde Bucket Co., a manufacturer of rain barrels, had the following data for 2016:

Sales

2,500 units

Sales price

$40 per unit

Variable costs

$24 per unit

Fixed costs

$19,500

Instructions

(a)What is the contribution margin ratio?

(b)What is the break-even point in dollars?

(c)What is the margin of safety in dollars and as a ratio?

(d)If the company wishes to increase its total dollar contribution margin by 30% in 2017, by how much will it need to increase its sales if all other factors remain constant?