$($ do in journal entry form$)$ Felde Bucket Co$.,$ a manufacturer of rain barrels, had the following data for $2019$ :

Determine contribution margin ratio, break$-$even point in dollars, and margin of safety.

Sales

Sales price

Variable costs

Fixed costs

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 $2020,$ by how much will it need to increase its sales if all other factors remain constant?

$2,500$ units

$$40$ per unit

$$24$ per unit

$$19,500$