Exercise 19-17

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

Sales2,300unitsSales price$50per unitVariable costs$35per unitFixed costs$20,700

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

Contribution margin ratio

%

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

Break-evenpoint$

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

%

If the company wishes to increase its total dollar contribution margin by 40% in 2017, by how much will it need to increase its sales if selling price per unit, variable price per unit and total fixed costs remain constant?(Round answer to 0 decimal places, e.g. 2,520.)

Total increase in sales required: