Calculate the break-even point in units and sales dollars, Accounting Basics

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Calculate the break-even point in units and sales dollars

Problem

Last month, Laredo Company sold 610 units for $29 each. During the month, fixed costs were $2,840 and variable costs were $15 per unit.

Required:

1. Determine the unit contribution margin and contribution margin ratio.

2. Calculate the break-even point in units and sales dollars.

3. Compute Laredo's margin of safety in units and as a percentage of sales.

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Accounting Basics: Calculate the break-even point in units and sales dollars

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Accounting Basics: Calculate the break-even point in units and sales dollars

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