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Question - Felde Bucket Co., a manufacturer of rain barrels, had the following data for 2016:
Sales 2,500 units
Sales price $40 per unit
Variable costs $24 per unit
Fixed costs $19,500
Instructions -
(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 by 30% in 2017, by how much will it need to increase its sales if all other factors remain constant?