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Montreal Seating Co., a manufacturer of chairs, had the following data for 2020: Sales 3,200 units Sales price $60 per unit Variable costs $30 per
Montreal Seating Co., a manufacturer of chairs, had the following data for 2020:
Sales | 3,200 units | |
Sales price | $60 per unit | |
Variable costs | $30 per unit | |
Fixed costs | $49,500 |
-Calculate the contribution margin ratio.(%)
-Calculate the break-even point in dollars.
-Calculate the margin of safety in dollars.
-The company wishes to increase its total dollar contribution margin by 56% in 2021. Determine by how much it will need to increase its sales if all other factors remain constant.
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