Question
Last month, Laredo Company sold 620 units for $28 each. During the month, fixed costs were $2,860 and variable costs were $16 per unit. Required:
Last month, Laredo Company sold 620 units for $28 each. During the month, fixed costs were $2,860 and variable costs were $16 per unit. Required: 1. Determine the unit contribution margin and contribution margin ratio. (Round your Contribution Margin Ratio to the nearest whole percentage.) 2. Calculate the break-even point in units and sales dollars. (Round your answers to the next whole number.) 3. Compute Laredos 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%)).
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