Last month, Laredo Company sold 580 units for $90 each. Duringthe month, fixed costs were $3,330 and variable costs were $9 perunit.
Required:
1. Determine the unit contribution margin andcontribution margin ratio.
2. Calculate the break-even point in units andsales dollars.
3. Compute Laredo’s margin of safety in unitsand as a percentage of sales.
