Question
SandhillBucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales2,770unitsSales price$30per unitVariable costs$18per unitFixed costs$16,620 What is the contribution margin ratio?
SandhillBucket Co., a manufacturer of rain barrels, had the following data for 2019.
Sales2,770unitsSales price$30per unitVariable costs$18per unitFixed costs$16,620
What is the contribution margin ratio?
Contribution margin ratio
%
What is the break-even point in dollars?
Break-even point
$
What is the margin of safety in dollars and as a ratio?
Margin of safety
$
Margin of safety ratio
%
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:
$
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