Question

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 in dollars and as a ratio? (Round ratio to 2 decimal places. es. 12.25.) Margin of safety Margin of safety ratio

Answer 1

Solution & 1 contribution Margin ratio of Contribution margin = Salesprice- rasiuble costs = 55-33 = $ 22 contribution margin ratio = contribution margin - sales price no 55 2 40% 2) Break even point = 22990 o.u = $57475 o margin of safety to total sabes - Break even sabes =(2090855). Sturs = $59475 Ratio= 57475 (2090455) = 50%

4 contribution required =(22 x 2090)+1:3) $59774 Hence total sales requereda 59774/0.4 a $ 149435 ce sales to be the creased = 1494357 20908ss 834485