Question
Lara Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales (3,000 units)-------$150,000 Variable expenses---------
Lara Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.
Sales (3,000 units)-------$150,000
Variable expenses---------90,000
Contribution margin------60,000
Fixed expenses -------------48,000
Net operating income---$12,000
Required:
a. What is the contribution margin per unit?
b. What is the contribution margin ratio?
c. What is the variable expense ratio?
d. What is the break-even point in dollar sales?
e. What is the margin of safety in dollars?
please solve it with the steps
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started