E$22-14$B Simple Seating Co$.,$ a manufacturer of chairs, had the following data for $2019$:

Sales

$2,500$ units

Sales price

$$50$ per unit

Variable costs

$$10$ per unit

Fixed costs

$$24,000$

Instructions

$*$ What is the contribution margin ratio?

$*$ What is the break$-$even point in dollars?

$*$ What is the margin of safety in units and dollars?

$*$ If the company wishes to increase its total dollar contribution margin by $40\%$ in $2020,$ by how much will it need to increase its sales if all other factors remain constant?