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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:
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
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