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Suppose Lattin Corp.'s breakeven point is revenues of 1,500,000. Fixed costs are 720,000. 1. Compute the contribution margin percentage. 2. Compute the selling price if
Suppose Lattin Corp.'s breakeven point is revenues of 1,500,000. Fixed costs are 720,000. 1. Compute the contribution margin percentage. 2. Compute the selling price if variable costs are $13 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 Lattin making a loss? What are the most likely reasons for this risk to increase? Can someone please explain 1-3 in detail, not just the numbers and how to set up the formulas. Thanks
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