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 th Problems 165 ecompany wishes to increase its total dollar contribution margin by 30% in 2017 by how much will it need to increase its sales if all other factors remain constant? (CGA adapted) OBLEMS P5-1A Vin Diesel owns the Fredonia Barber Shop. He employs four barbers and pays Determine variable and fud each a base rate of $1,250 per month. One of the barbers serves as the manager and costs, compuse break-even receives an extra $500 per month. In addition to the base rate, each barber also receives a point, prepare a CVP graph commission of $4.50 per haircut. and determine net income LO 1,2,3,4).AN Other costs are as follows. $200 per month $1,100 per month $0.30 per haircut $175 per month plus $0.20 per haircut $25 per month Advertising Rent Barber supplies Utilities Magazines Vin currently charges $10 per haircut. Instructions (a) Determine the variable costs per haircut and the total monthly fixed costs. (b) Compute the break-even point in units and dollars. (c) Prepare a CVP graph, assuming a maximum of 1,800 haircuts in a month. Use incre (a) VC $5 ments of 300 haircuts on the horizontal axis and $3,000 on the vertical axis. (d) Determine net income, assuming 1,600 haircuts are given in a month. d distributes B-Lite, a diet soft drink. The beverage is Prepare a CVP income urtomers 75 cents per bottle. statement, compute b Company bottles an