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Safari File Edit View History Bookmarks window Help ??67% iD 8 ??)) Tue Jun 19 6:40 PM Alex a ezto.mheducation.com Home - alamo.edu Hill Connect Chapter 6 Exercises 6. value: 11.11 points Last month, Laredo Company sold 570 units for $33 each. During the month, fixed costs were $2,760 and variable costs were $11 per unit Required 1. Determine the unit contribution margin and contribution margin ratio. (Round your Contribution Margin Ratio to the nearest whole percentage.) Unit Contribution Margin Contribution Margin Ratio 2. Calculate the break-even point in units and sales dollars. (Round your answers to the next whole number.) Break-Even Units Units Break-Even Sales Dollars 3, Compute Laredo's margin of safety in units and as a percentage of sales. (Round your Percentage of Sales answer to 4 decimal places (Le, .123456 should be entered as 12.3456%). Margin of Safety Margin of Safety as Percentage of Sales Units popcorntime ap

Explanation / Answer

1) Unit contribution margin = 33-11 = 22 per unit

Contribution margin ratio = 22*100/33 = 67%

2) Break even units = 2760/22 = 125 Units

Break even sales dollars = 125*33 = $4125

3) Margin of safety = 570-125 = 445 Units

Margin of safety as percentage of sales = 445*33*100/18810 = 78.0702%

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