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Accounting

2016 2017 2018
Sales $ 135,987 $ 177,866 $ 232,887
Variable expenses
Cost of sales 88,265 111,934 139,156
Fulfillment 14,095 20,199 27,222
Marketing 7,233 10,069 13,814
Technology and content 8,042.50 11,310 14,418.50
Total variable expenses 117,636 153,512 194,610
Contribution margin $ 18,351 $ 24,354 $ 38,277
Fixed expenses
Fulfillment 3,524 5,050 6,805
Technology and content 8,042.50 11,310 14,418.50
General and admin 2,432 3,674 4,336
Other 167 214 296
Total fixed expenses 14,165 20,248 25,856
Operating income $ 4,186 $ 4,106 $ 12,421
CM Ratio 0.13495 0.13692 0.16436
Breakeven Dollar Sales $ 104,967.8579 $ 147,878.1625 $ 157,314.2805
Margin of Safety (Dollars) $ 31,019 $ 29,988 $ 75,573
Safety margin % of sales 22.810% 16.86% 32.45%

based on the information above - Discuss the trend in the contribution margin (dollars), and likely reasons for this trend. What is the trend in the contribution margin ratio, and what are likely reasons for the changes in this ratio? What insight does this ratio provide for analyzing the trend in the dollar magnitude of the contribution margin from question 2? analyze the margin of safety?

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