E18-17 Hardwood Seating Co., a manufacturer of chairs, had the following data for 2012.
|
Sales |
2,400 units |
|
Sales price |
$40 per unit |
|
Variable costs |
$14 per unit |
|
Fixed costs |
$19,500 |
Instructions
(a) What is the contribution margin ratio?
(b) What is the break-even point in dollars?
(c) What is the margin of safety in dollars and as a ratio?
(d) If the company wishes to increase its total dollar contribution margin by 40% in 2013, by how much will it need to increase its sales if all other factors remain constant?