Felde Bucket Co., a manufacturer of rain barrels, had the following data for 2016. ...
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Accounting
Felde Bucket Co., a manufacturer of rain barrels, had the following data for 2016.
| Sales | 2,830 | units | |
| Sales price | $50 | per unit | |
| Variable costs | $35 | per unit | |
| Fixed costs | $16,980 |
1. What is the contribution margin ratio? (Round answer to 0 decimal places, e.g. 5,275.)
2. What is the break-even point in dollars? (Round intermediate calculation and final answers to 0 decimal places, e.g. 5,275.)
3. What is the margin of safety in dollars and as a ratio? (Round ratio to 2 decimal places, e.g. 12.25.)
4. 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 selling price per unit, variable price per unit and total fixed costs remain constant? (Round answer to 0 decimal places, e.g. 2,520.)
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