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I need help with the contribution margin ratio Contribution Margin Concepts DiPinto Electric Guitars & Basses sells musical instruments in Philadelphia. Assume the following information
I need help with the contribution margin ratio
Contribution Margin Concepts DiPinto Electric Guitars \& Basses sells musical instruments in Philadelphia. Assume the following information comes from the company's prior year records. \begin{tabular}{|l|r|r|c|} \hline & \multicolumn{1}{|c|}{ Flxed } & \multicolumn{1}{c|}{ Varlable } & Total \\ \hline Sales & & & $800,000 \\ \hline Costs & & & \\ \hline Goods sold & & $346,000 & \\ \hline Labor & $180,000 & 40,000 & \\ \hline Supplies & 10,000 & 4,000 & \\ \hline Utilities & 9,000 & 5,000 & \\ \hline Rent & 48,000 & - & \\ \hline Advertising & 10,000 & - & \\ \hline Miscellaneous & 10,000 & 5,000 & \\ \hline Total costs & $267,000 & $400,000 & (667,000) \\ \hline Net income & & & $133,000 \\ \hline \end{tabular} Required (a.) Determine the annual break-even dollar sales volume. Contribution margin ratio: 0 Annual break-even dollar sales volumes: $534,000 (b.) Determine the current margin of safety in dollars. $266,000 (c.) What is the annual break-even dollar sales volume if management makes a decision that increases fixed costs by $50,000? $634,000
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