Suppose Lattin Corp 's breakeven point is revenues of $1,000,000 Fixed costs are $400,000 Required 1 Compute the contribution margin percentage 2 Compute the selling price if variable costs are $12 per unit 3 Suppose 80,000 units are sold Compute the margin of safety in units ...

Contribution margin ratio 400000 1000000 40 Se ...

Suppose Lattin Corp.'s breakeven point is revenues of $1,000,000. Fixed costs are $400,000. Required 1. Compute the

Question:

Suppose Lattin Corp.'s breakeven point is revenues of $1,000,000. Fixed costs are $400,000.
Required
1. Compute the percentage.
2. Compute the selling price if variable costs are $12 per unit.
3. Suppose 80,000 units are sold. Compute the margin of safety in units.
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...