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What is the margin of safety in dollars and as a ratio

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Question - Felde Bucket Co., a manufacturer of rain barrels, had the following data for 2016.

Sales 2,350 units

Sales price $44.46 per unit

Variable costs $15.56 per unit

Fixed costs $16,000

What is the contribution margin ratio?

What is the break-even point in dollars?

What is the margin of safety in dollars and as a ratio?

If the company wishes to increase its total dollar contribution margin by 30% in 2017, 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?

Reference no: EM132550905

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