Q 2 Description

Manitoba Lounge Co., a manufacturer of Beds, had the following data for 2022:

Sales

2,850 Units

Sales Price

$55 Per Unit

Variable Costs

$34 Per Unit

Fixed Costs

$22,500

Required

A) Calculate the Contribution Margin Ratio

B) Calculate the Break-Even Point in dollars

C) Calculate the Margin of Safety in dollars

D) The company wishes to increase its total dollar contribution margin by 55% in 2022. Determine by how much it will need to increase its sales if all other factors remain constant.