Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Last month, Laredo Company sold 580 units for $32 each. During the month, fixed costs were $2,780 and variable costs were $12 per unit. Required:

image text in transcribed

Last month, Laredo Company sold 580 units for $32 each. During the month, fixed costs were $2,780 and variable costs were $12 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

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

Step: 3

blur-text-image

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

Auditing Assurance Services and Ethics in Australia an Integrated Approach

Authors: Alvin A Arens, Peter J. Best, Greg Shailer, Brenton Fiedler

9th edition

978-1442539365, 1442539364

More Books

Students also viewed these Accounting questions

Question

Should civil service employees be allowed to unionize? Why?

Answered: 1 week ago