Sales | 2500 | units |
Sales Price | $40 | per unit |
Variable Costs | $26 | per unit |
Fixed Costs | $19,600 | |
Contribution Margin Ratio | ||
=Contribution/Sales | ||
=(40-26)/40 | ||
35% | ||
BEP in Dollars | ||
=Fixed Costs/Contribution Margin Ratio | ||
=19600/35% | ||
$56,000 | ||
Margin of Safety ($) | ||
=Sales-BEP in Dollars | ||
=(2500*40)-56000 | ||
$44,000 | ||
Margin of Safety (%) | ||
=Margin of Safety in $ / Sales in $ | ||
=44000/(2500*40) | ||
44.00% | ||
Total increase in sales required: | ||
Existing Contribution | $35,000 | |
+Increase in Contribution required | 40% | |
Total Contribution required | $49,000 | |
/Contribution Margin Ratio | 35% | |
Total Sales required | $1,40,000 | |
-Current Sales | -$1,00,000 | |
Total increase in sales required | $40,000 |
Exercise 19-17 Felde Bucket Co., a manufacturer of rain barrels, had the following data for 2016....
Felde Bucket Co., a manufacturer of rain barrels, had the following data for 2016. Sales Sales price Variable costs Fixed costs 2,430 units $50 per unit $35 per unit $18,225 What is the contribution margin ratio? (Round answer to 0 decimal places, e.g. 5,275.) Contribution margin ratio e Textbook and Media What is the break-even point in dollars? (Round intermediate calculation and final answers to 0 decimal places, e.g. 5,275.) Break-even point $ e Textbook and Media What is the...
Felde Bucket Co., a manufacturer of rain barrels, had the following data for 2016. Sales Sales price Variable costs Fixed costs 2,090 units $55 per unit $33 per unit $22,990 What is the contribution margin ratio? (Round answer to 0 decimal places, eg 5,275.) Contribution margin ratio e Textbook and Media What is the break-even point in dollars? (Round intermediate calculation and final answers to 0 decimal places Break-even points e Textbook and Media What is the margin of safety...
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...
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Felde Bucket Co., a manufacturer of rain barrels, had the following data for 2016. Sales 2,090 units Sales price $55 per unit Variable costs $33 per unit Fixed costs $22,990 What is the contribution margin ratio? AND What is the break-even point in dollars? AND What is the margin of safety in dollars and as a ratio? AND If the company wishes to increase its total dollar contribution margin by 30% in 2017, by how much will it need to...
Bridgeport Co., a manufacturer of rain barrels, had the following data for 2016. Sales 3,300 units Sales price $100 per unit Variable costs $37 per unit Fixed costs $172,557 (a) Your answer is correct. What is the contribution margin ratio? (Round answer to 0 decimal places, e.g. 5,275.) Contribution margin ratio % Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 1 of...
Cullumber Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,260 units Sales price $50 per unit Variable costs $30 per unit Fixed costs $20,340 What is the contribution margin ratio? Contribution margin ratio enter the Contribution margin ratio in percentages % What is the break-even point in dollars? Break-even point $enter the break-even point in dollars What is the margin of safety in dollars and as a ratio? Margin of...
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Blue Spruce Co., a manufacturer of rain barrels, had the following data for 2016. Sales Sales price Variable costs Fixed costs 4,600 units $60 per unit $24 per unit $145,728 X Your answer is incorrect. What is the contribution margin ratio? (Round answer to O decimal places, eg. 5,275.) Contribution margin ratio e Textbook and Media * Your answer is incorrect. What is the break-even point in dollars? (Round intermediate calculation and final answers to decimal places, eg. 5,275.) Break-even...