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nal, etc. questions Q5: Laraia Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales

nal, etc. questions Q5: Laraia Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales (3,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $150,000 90.000 60,000 48.000 $12.000 Required: a. What is the contribution margin per unit? b. What is the variable expense ratio? c. If sales decline to 2,900 units, what would be the estimated net operating income? d. What is the break-even point in dollar sales? e. Estimate how many units must be sold to achieve a target profit of $54,000. f. What is the margin of safety percentage? [1.0] [1.0] [1.5] [1.0] [1.0] [1.0]
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Q5: Laraia Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Required: a. What is the contribution margin per unit? b. What is the variable expense ratio? c. If sales decline to 2,900 units, what would be the estimated net operating income? d. What is the break-even point in dollar sales? [1.0] [1.0] [1.51 e. Estimate how many units must be sold to achieve a target profit of $54,000. [1.0] f. What is the margin of safety percentage? [1.0] [1.0]

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