Sheridan Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales   2,200  units Sales price   $75  per unit Variable costs   $45  per unit Fixed costs   $18,480             What is the contribution margin ratio? Contribution margin ratio      %           What is the break-even point in dollars? Break-even point   $             What is the margin of safety in dollars and as a ratio? Margin of safety   $     Margin of safety ratio      %           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:   $

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Sheridan Bucket Co., a manufacturer of rain barrels, had the following data for 2019.

Sales   2,200  units
Sales price   $75  per unit
Variable costs   $45  per unit
Fixed costs   $18,480  
 
 
 
 
 
What is the contribution margin ratio?

Contribution margin ratio  
 
 %
 
 
 
 
 
What is the break-even point in dollars?

Break-even point  
$
 
 
 
 
 
 
What is the margin of safety in dollars and as a ratio?

Margin of safety  
$
 
 
Margin of safety ratio  
 
 %
 
 
 
 
 
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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