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E5-17 Oak Bucket Co., a manufacturer of wood buckets

Price: $1.99


E5-17 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?

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