If the company wishes to increase its total dollar

Reference no: EM13603174

resque Isle Seating Co., a manufacturer of chairs, had the following data for 2011:

Sales 2,900 units
Sales price $50 per unit
Variable costs $20 per unit
Fixed costs $18,420

Compute the following: (Do not round intermediate calculations. Round ratios to 2 decimal places e.g. 15.75% and all other answers to 0 decimal places, e.g. 125.)

a. Contribution margin ratio %
b. Break-even point in dollars $
c. Margin of safety in dollars $
Margin of safety ratio %

d. If the company wishes to increase its total dollar contribution margin by 41% in 2012, by how much will it need to increase its sales if all other factors remain constant?

Reference no: EM13603174

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