Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Last month, Laredo Company sold 600 units for $80 each. During the month, fixed costs were $3,570 and variable costs were $12 per unit. Last
Last month, Laredo Company sold 600 units for $80 each. During the month, fixed costs were $3,570 and variable costs were $12 per unit.
Last month, Laredo Company sold 600 units for $80 each. During the month, fixed costs were $3,570 and variable costs were $12 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%)). Margin of Safety Margin of Safety as Percentage of Sales Units %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