Please do part D Exercise 18-17 (Part Level Submission) Felde Bucket Co., a manu
ID: 2531242 • Letter: P
Question
Please do part D
Exercise 18-17 (Part Level Submission) Felde Bucket Co., a manufacturer of rain barrels, had the following data for 2016 Sales Sales price Variable costs Fixed costs 2,420 units $35.99 per unit $12.60 per unit $18,100 Your answer is correct What is the contribution margin ratio? (Round answer to O decimal places, e.g. 5,275.) Contribution margin ratio Click if you would like to Show Work for this question: Open Show Work 65| 96 SHOW SOLUTION SHOW ANSWER LINK TO TEXT VIDEO:APPLIED SKILLS Attempts: 1 of 3 used ? (b) Your answer is correct What is the break-even point in dollars? (Round intermediate calculation and final answers to 0 decimal places, e.g. 5,275.) Break-even point 27846Explanation / Answer
Exisitng Contribution Margin = (Selling Price Per Unit - Variable Costs Per unit ) * Units
= ( $ 35 .99 - $ 12.60) * 2,420 Units
= $ 56,603.80
Increase in Contribution Margin = Exisitng * 30%
= $ 56,603.80 * 30%
= $ 16,981.14
Hence Sales required for the increased Contribution Margin = Increased Contribution Margin / Exisitng Contribution Margin Ratio
=$ 16,981.14/ 64.990275%
= $ 26,129
Hence the correct answer is $ 26,129