Exercise 18-17 (Part Level Submission)

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

Sales		2,000	units
Sales price		$30	per unit
Variable costs		$18	per unit
Fixed costs		$11,520

(a)

	Your answer is correct.

What is the contribution margin ratio? (Round answer to 0 decimal places, e.g. 5,275.)

Contribution margin ratio

%

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(b)

	Your answer is correct.

What is the break-even point in dollars? (Round intermediate calculation and final answers to 0 decimal places, e.g. 5,275.)

Break-even point

$

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(c)

What is the margin of safety in dollars and as a ratio? (Round ratio to 2 decimal places, e.g. 12.25.)

Margin of safety		$
Margin of safety ratio			%

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