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Calculate the contribution margin ratio for Agate company

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Reference no: EM132996098

Question - The Agate Corporation manufactures and sells two types of bookcases, standard and deluxe. Agate expects the following operating results next year for each type of bookcase:

 

Standard

Deluxe

Sales

$450,000

$50,000

Variable expenses (total)

$180,000

$20,000

Agate expects to have a total of $57,600 in fixed expenses next year.

Required -

1. Calculate the contribution margin ratio for the Agate company.

2. What is Agate's break-even point next year in sales dollars?

3. What is the break-even point next year in sales dollars for each product?

4. Calculate the margin of safety in dollars and margin of safety percentage for the overall company.

5. Calculate the sales in dollars if the company has a target profit of $350,000.

Reference no: EM132996098

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