Answered step by step
Verified Expert Solution
Question
1 Approved Answer
SunlandBucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,850units Sales price $60per unit Variable costs $42per unit Fixed costs
SunlandBucket Co., a manufacturer of rain barrels, had the following data for 2019.
Sales 2,850units
Sales price $60per unit
Variable costs $42per unit
Fixed costs $17,955
(a) What is the contribution margin ratio?
(b) What is the break-even point in dollars?
(c) What is the margin of safety in dollars and as a ratio?
(d) If the company wishes to increase its total dollar contribution margin by30% 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?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started