Business, 09.07.2020 06:01, kada96

Contribution Margin Concepts The following information is taken from the 2017 records of Hendrix's Guitar Center. Fixed Variable Total Sales $2,250,000 Costs Goods sold 1,012,500 Labor $480,000 180,000 Supplies 6,000 15,000 Utilities 36,000 39,000 Rent 72,000 0 Advertising 18,000 73,500 Miscellaneous 18,000 30,000 Total costs $630,000 $1,350,000 (1,980,000) Net income $ 270,000 Required (a.) Determine the annual break-even dollar sales volume. Contribution margin ratio: Answer Annual break-even dollar sales volumes: $Answer (b.) Determine the current margin of safety in dollars. $Answer (d.) What is the annual break-even dollar sales volume if management makes a decision that increases fixed costs by $100,000? $Answer

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Contribution Margin Concepts The following information is taken from the 2017 records of Hendrix's G...