What is the contribution margin ratio? Contribution margin ratio     %     LINK TO TEXT LINK TO TEXT LINK TO TEXT

Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter19: Cost Behavior And Cost-Volume-Profit Analysis
Section: Chapter Questions
Problem 19.3CP: Break-even analysis Somerset Inc. has finished a new video game, Snowboard Challenge. Management is...
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Exercise 22-17 a-d

Carla Vista Bucket Co., a manufacturer of rain barrels, had the following data for 2019.
Sales   2,960 units
Sales price   $60 per unit
Variable costs   $42 per unit
Fixed costs   $26,640  
 
 
 
 
What is the contribution margin ratio?
Contribution margin ratio  

 

%
 
 

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What is the break-even point in dollars?
Break-even point   $

 

 
 

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What is the margin of safety in dollars and as a ratio?
Margin of safety   $

 

 
Margin of safety ratio  

 

%
 
 

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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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