Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 2 of 4 - / 10 Crane Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales Sales price Variable

image text in transcribed

Question 2 of 4 - / 10 Crane Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales Sales price Variable costs Fixed costs 2,380 units $45 per unit $27 per unit $21.420 (a) What is the contribution margin ratio? Contribution margin ratio 40 % (b) What is the break-even point in dollars? Break-even point $ 53550 (c) What is the margin of safety in dollars and as a ratio? Margin of safety $ Margin of safety ratio (d) If the company wishes to increase its total dollar contribution margin by 30% in 2020, by how much will it need to increase its sales if selling price per unit, variable price per unit and total fixed costs remain constant? Total increase in sales required: $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Comprehensive Assurance & Systems Tool

Authors: Laura R. Ingraham, Greg Jenkins

4th Edition

0134790472, 9780134790473

More Books

Students also viewed these Accounting questions

Question

What is a stock dividend? How does it differ from a stock split?

Answered: 1 week ago

Question

What does the acronym API stand for? What is the role of an API?

Answered: 1 week ago