Question: 1 8 . Contribution Margin Concepts DiPinto Electric Guitars & Basses sells musical instruments in Philadelphia. Assume the following information comes from the company's

18. Contribution Margin Concepts DiPinto Electric Guitars \& Basses sells musical instruments in Philadelphia. Assume the following information comes from the company's prior year records. REQUIRED a. Determine the annual break-even dollar sales volume. b. Determine the current margin of safety in dollars. c. Prepare a cost-volume-profit graph for the guitar shop. Label both axes in dollars with maximum values of \(\$ 1,000,000\). Draw a vertical line on the graph for the current \((\$ 800,000)\) sales level, and label total variable costs, total fixed costs, and total profits at \(\$ 800,000\) sales. d. What is the annual break-even dollar sales volume if management makes a decision that increases fixed costs by \(\$ 50,000\)?

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