Montreal Seating Co., a manufacturer of chairs, had the following data for 2016:
Sales....................................2,800 units
Sales price............................$50 per unit
Variable costs........................$30 per unit
Fixed costs................................$30,000
Instructions
(a) Calculate the contribution margin ratio.
(b) Calculate the break-even point in dollars.
(c) Calculate the margin of safety in dollars.
(d) The company wishes to increase its total dollar contribution margin by 60% in 2017. Determine by how much it will need to increase its sales if all other factors remain constant.