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Presidio, Incorporated, produces one model of mountain bike. Partial information for the company follows: Required: ast month, Laredo Company sold 490 units for $45 each.
Presidio, Incorporated, produces one model of mountain bike. Partial information for the company follows:
Required: ast month, Laredo Company sold 490 units for $45 each. During the month, fixed costs were $5,724 and variable costs were $9 per unit.
Required:
- Determine the unit contribution margin and contribution margin ratio.
- Calculate the break-even point in units and sales dollars.
- Compute Laredos margin of safety in units and as a percentage of sales.
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