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 2020, by how much will it need to increase its sales if all other factors remain constant?

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 8E: The sales price per unit is 13 for the Voyageur Companys only product. The variable cost per unit is...
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Felde Bucket Co., a manufacturer of rain barrels, had the following data for 2019:
Sales 2,500 units
Sales price $40 per unit
Variable costs $24 per unit
Fixed costs $19,500
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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 2020, by how much
will it need to increase its sales if all other factors remain constant?

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