Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 |
CALCULATE:
1- Contribution margin ratio = .....% ?
2- Break-even point = $.... ?
3- Margin of safety= $.....?
4- Margin of safety ratio = ....% ?
5- 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 selling price per unit, variable price per unit and total fixed costs remain constant?
Total increase in sales required = $...... ?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started