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Question 2: (35 Marks) Manitoba Lounge Co., a manufacturer of Beds, had the following data for 2020: Sales 2,800 Units Sales Price $54 Per Unit
Question 2: (35 Marks) Manitoba Lounge Co., a manufacturer of Beds, had the following data for 2020: Sales 2,800 Units Sales Price $54 Per Unit Variable Costs $35 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 60% in 2020. Determine by how much it will need to increase its sales if all other factors remain constant.
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