Question

# Carla Vista Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales...

Carla Vista Bucket Co., a manufacturer of rain barrels, had the following data for 2019.

 Sales 2,330 units Sales price \$70 per unit Variable costs \$42 per unit Fixed costs \$32,620

(a)

What is the contribution margin ratio?

 Contribution margin ratio %

(b)

What is the break-even point in dollars?

 Break-even point \$

(c)

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

 Margin of safety \$ Margin of safety 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 selling price per unit, variable price per unit and total fixed costs remain constant?

 Total increase in sales required: \$

a) contribution margin Ratio=40%

b) Break even point in dollars=\$81550

c) Margin of safety =\$81550, Margin of safety ratio=50%

d) Total increase in sales=\$19572

Part d)

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