Hardwood Seating Co., a manufacturer of chairs, had the following data for 2012.
Sales
|
2,400 units
|
Sales price
|
$40 per unit
|
Variable costs
|
$14 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 40% in 2013, by how much will it need to increase its sales if all other factors remain constant?