Suppose lattin corps breakeven point is revenues of 1100000, Ask an Expert

Accounting

Suppose Lattin Corp.'s breakeven point is revenues of $1100000. Fixed costs are $660000.

Requirements

1. Compute the contribution margin percentage.

2. Compute the selling price if variable costs are $16 per unit.

3. Suppose 65000 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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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92640123

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