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N and variable costs were $9 per Last month, Laredo Company sold 520 units for $60 each. During the month, fixed costs unit.
Last month, Laredo Company sold 520 units for $60 each. During the month, fixed costs were $8,211 and variable costs were $9
Last month, Laredo Company sold 520 units for $60 each. During the month, fixed costs were $8,211 and variable costs were $9
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Answer #1
1.
Unit contribution margin Sales per unit - Variable costs per unit
Unit contribution margin 60-9
Unit contribution margin $51
Contribution margin ratio Unit contribution margin/Sales per unit
Contribution margin ratio 51/60
Contribution margin ratio 85%
2.
Break-even units Fixed costs/Unit contribution margin
Break-even units 8211/51
Break-even units 161
Break-even sales dollar Fixed costs/Contribution margin ratio
Break-even sales dollar 8211/85%
Break-even sales dollar $9,660
3.
Margin of safety 520-161
Margin of safety 359 units
Margin of safety as percentage of sales 359/520
Margin of safety as percentage of sales 69.0385%
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