Question: Oak Bucket Co a manufacturer of wood buckets had the

Oak Bucket Co., a manufacturer of wood buckets, had the following data for 2013:
Sales ............... 2,600 units
Sales price ............ $40 per unit
Variable costs .......... $16 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 30% in 2014, by how much will it need to increase its sales if all other factors remain constant?
(CGA adapted)


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  • CreatedMarch 22, 2012
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