E610 (Algo) Calculating Contribution Margin, Contribution Margin Ratio, Margin of Safety [LO 62, 63]
Last month, Laredo Company sold 540 units for $70 each. During the month, fixed costs were $4,704 and variable costs were $42 per unit.
Required:
1. Determine the unit contribution margin and contribution margin ratio.
2. Calculate the breakeven point in units and sales dollars.
3. Compute Laredo’s margin of safety in units and as a percentage of sales.
Complete this question by entering your answers in the tabs below.
Determine the unit contribution margin and contribution margin ratio. (Round your Contribution Margin Ratio to the nearest whole percentage.)

Calculate the breakeven point in units and sales dollars. (Round your answers to the nearest whole number.)

Compute Laredo’s margin of safety in units and as a percentage of sales. (Round your intermediate calculations to the nearest whole number. Round your Percentage of Sales answer to 4 decimal places (i.e. 0.123456 should be entered as 12.3456%)).

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