Corporation also manufactures chairs and tables at one of their divisions. The following is data for its chair manufacturing department for the month of February. Actual Sales Selling Price Variable Costs Fixed Costs 4,500 Chairs $60.00 per chair $15.00 per chair $72,000 Calculate the Margin of Safety in revenue dollars. If the company wishes to increase its total dollar contribution margin by 50% in March, by how much will it have to increase sales, in units, if all factors remain the same?
Corporation also manufactures chairs and tables at one of their divisions. The following is data for its chair manufacturing department for the month of February. Actual Sales Selling Price Variable Costs Fixed Costs 4,500 Chairs $60.00 per chair $15.00 per chair $72,000 Calculate the Margin of Safety in revenue dollars. If the company wishes to increase its total dollar contribution margin by 50% in March, by how much will it have to increase sales, in units, if all factors remain the same?
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6EB: Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit...
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Corporation also manufactures chairs and tables at one of their divisions. The following is data for its chair manufacturing department for the month of February.
Actual Sales Selling Price Variable Costs Fixed Costs
4,500 Chairs $60.00 per chair $15.00 per chair $72,000
-
Calculate the Margin of Safety in revenue dollars.
-
If the company wishes to increase its total dollar contribution margin by 50% in March, by how much will it have to increase sales, in units, if all factors remain the same?
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