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Calculate the break-even point in dollars

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Reference no: EM133051703

Question - Manitoba Lounge Co., a manufacturer of beds, had the following data for 2020.

Sales 2,800 Units

Sales Price $54 Per Unit

Variable Costs $35 Per Unit

Fixed Costs $22,500

Required -

a. Calculate the contribution margin ratio.

b. Calculate the break-even point in dollars.

c. Calculate the margin of safety in dollars.

d. The company wishes to increase its total dollar contribution margin by 60% in 2020. Determine by how much it will need to increase its sales if all other factors remain constant.

Reference no: EM133051703

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