Exercise 19-17

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	$22 per unit
Fixed costs	$19,800

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

Contribution margin ratio _____%

b.) 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 $_____

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 $_____

d.) 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: $_____