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Contribution Margin Concepts The following information is taken from the 2017 records of Hendrix's Guitar Center. Fixed Va ble Total Sales ' , $1,125,000 7 COStS l I ' Goods sold ' 505,250 ' Labor '1 $240,000 ' 90,000 Supplies 3,000 7,500 Utilities 18,000 19,500 Rent 7 36,000 0 Advertising 9,000 36,750 '7 Miscellaneous 9,000 15,000: ... Total costs $315,000 $675,000 (990,000) ,= Net income $ 135,000 Required (a.) Determine the annual break-even dollar sales volume. Contribution margin ratio: Annual break-even dollar sales volumes: $ (b.) Determine the current margin of safety in dollars. $ (c.) What is the annual break-even dollar sales volume if management makes a decision that increases fixed costs by $40,000? $