Karama Co., a manufacturer of wood chairs, had the following data for 2020: Sales Sales price Variable costs Fixed costs 2,600 units 50 JOD per unit 30 JOD per unit 24,000 JOD Instructions (a) What is the contribution margin ratio? (b) What is the break-even point in Dinar? (c) What is the margin of safety in Dinars and as a ratio? (d) If the company wishes to increase its total Dinar contribution margin by 30% in 2021, by how much will it need to increase its sales if all other factors remain constant?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Karama Co., a manufacturer of wood chairs, had the following data for 2020:
Sales
Sales price
Variable costs
2,600 units
50 JOD per unit
30 JOD per unit
Fixed costs
24,000 JOD
Instructions
(a) What is the contribution margin ratio?
(b) What is the break-even point in Dinar?
(c) What is the margin of safety in Dinars and as a ratio?
(d) If the company wishes to increase its total Dinar contribution margin by 30% in 2021, by
how much will it need to increase its sales if all other factors remain constant?
...
Transcribed Image Text:+ Touch t. 04:25 45% D 9:28 141053 - Saved Karama Co., a manufacturer of wood chairs, had the following data for 2020: Sales Sales price Variable costs 2,600 units 50 JOD per unit 30 JOD per unit Fixed costs 24,000 JOD Instructions (a) What is the contribution margin ratio? (b) What is the break-even point in Dinar? (c) What is the margin of safety in Dinars and as a ratio? (d) If the company wishes to increase its total Dinar contribution margin by 30% in 2021, by how much will it need to increase its sales if all other factors remain constant? ...
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