CH 6 Number 6

Last month, Laredo Company sold 500 units for $30 each. During the month, fixed costs were $2,620 and variable costs were $18 per unit. Required: 1. 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 2. Calculate the break-even point in units and sales dollars. (Round your answers to the next whole number) Break-Even Units Units Break-Even Sales Dollars 3. Compute Laredo's margin of safety in units and as a percentage of sales. (Round your Percentage of Sales answer to 4 decimal places (i.e. .123456 should be entered as 12.3456%). Margin of Safety Margin of Safety as Percentage of Sales Units