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Suppose Garrett Corp.'s breakeven point is revenues of $1,400,000. Fixed costs are $630,000 Requirements 1. Compute the contribution margin percentage. 2. Compute the selling price

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Suppose Garrett Corp.'s breakeven point is revenues of $1,400,000. Fixed costs are $630,000 Requirements 1. Compute the contribution margin percentage. 2. Compute the selling price if variable costs are $11 per unit. 3. Suppose 90,000 units are sold. Compute the margin of safety in units and dollars. 4. What does this tell you about the risk of Garrett making a loss? What are the most likely reasons for this risk to increase? Requirement 1. Compute the contribution margin percentage Determine the formula for the contribution margin percentage. Contribution margin percentage Ficced costs Breakeven point in revenues (Enter percentage as a whole number.) The contribution margin percentage is 45 % Requirement 2. Compute the selling price if variable costs are $11 por unit. Determine the formula used to calculate the selling price, Selling price Variable costs per unit Contribution margin percentage) The selling price is $ 20 1. Compute the contribution margin percentage. 2. Compute the selling price if variable costs are $11 per unit. 3. Suppose 90,000 units are sold. Compute the margin of safety in units and dollars. 4. What does this tell you about the risk of Garrett making a loss? What are the most likely reasons for this risk to increase? (Enter percentage as a whole number.) The contribution margin percentage is Requirement 2. Compute the selling price if variable costs are $11 per unit. Determine the formula used to calculate the selling price. 45 % Selling price Variable costs per unit 1 Contribution margin percentage) 20 The selling price is $ Requirement 3. Suppose 90,000 units are sold. Compute the margin of safety in units and dollars. Determine the formula to calculate the margin of safety in dollars. Budgeted (or actual) revenue Breakeven revenue Margin of safety in dollars The margin of safety is units and $ Enter any number in the edit fields and then click Check

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