question archive Oak Bucket Co
Oak Bucket Co
Subject:AccountingPrice: Bought3
Oak Bucket Co., a manufacturer of wood buckets, had the following data for 2013:
Sales …………………………………..2,600 units
Sales price …………………………….$40 per unit
Variable costs …………………………$16 per unit
Fixed costs ……………………………$19,500
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 2014, by how much will it need to increase its sales if all other factors remain constant?
