Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6-14 Last month, Laredo Company sold 590 units for $95 each. During the month, fixed costs were $6,536 and variable costs were $57 per unit.

6-14

image text in transcribedimage text in transcribedimage text in transcribed

Last month, Laredo Company sold 590 units for $95 each. During the month, fixed costs were $6,536 and variable costs were $57 per unit. Required: 1. Determine the unit contribution margin and contribution margin ratio. 2. Calculate the break-even point in units and sales dollars. 3. Compute Laredo's margin of safety in units and as a percentage of sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the unit contribution margin and contribution margin ratio. (Round your contribution Margin Ratio to the nearest whole percentage.) Unit Contribution Margin Contribution Margin Ratio % Required 1 Required 2 Required 3 Calculate the break-even point in units and sales dollars. (Round your answers to the nearest whole number.) Units Break-Even Units Break-Even Sales Dollars Required 1 Required 2 Required 3 Compute Laredo's margin of safety in units and as a percentage of sales. (Round your intermediate calculations to the nearest whole number. Round your Percentage of Sales answer to 4 decimal places (i.e. 0.123456 should be entered as 12.3456%)). Units Margin of Safety Margin of Safety as Percentage of Sales %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Teaching Calculation Audit And Test

Authors: Richard English

1st Edition

144627277X, 978-1446272770

More Books

Students also viewed these Accounting questions

Question

A single parity bit can CORRECT single bit errors. True False

Answered: 1 week ago

Question

Prepare for a successful job interview.

Answered: 1 week ago

Question

Describe barriers to effective listening.

Answered: 1 week ago

Question

List the guidelines for effective listening.

Answered: 1 week ago