CVP analysis, margin of safety. 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?
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