Blossom Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,430 units Sales price $40 per unit Variable costs $20 per unit Fixed costs $21,870 (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 %
Blossom Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,430 units Sales price $40 per unit Variable costs $20 per unit Fixed costs $21,870 (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 %
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...
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Blossom Bucket Co., a manufacturer of rain barrels, had the following data for 2019.
Sales | 2,430 | units | |
Sales price | $40 | per unit | |
Variable costs | $20 | per unit | |
Fixed costs | $21,870 |
(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: |
$
|
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