Blossom Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales   2,430  units Sales price   $40  per unit Variable costs   $20  per unit Fixed costs   $21,870 (a) What is the contribution margin ratio? Contribution margin ratio           % (b) What is the break-even point in dollars? Break-even point   $                (c) What is the margin of safety in dollars and as a ratio? Margin of safety   $         Margin of safety ratio                %

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter2: Building Blocks Of Managerial Accounting
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Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...
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Blossom Bucket Co., a manufacturer of rain barrels, had the following data for 2019.

Sales   2,430  units
Sales price   $40  per unit
Variable costs   $20  per unit
Fixed costs   $21,870

(a)

What is the contribution margin ratio?

Contribution margin ratio  
 
      %

(b)

What is the break-even point in dollars?

Break-even point  
$               

(c)

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

Margin of safety  
$      
 
Margin of safety ratio  
 
           %

(d)

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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