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Question - Lara Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.
Sales (3,000 units) $150,000
Variable expenses 90,000
Contribution margin 60,000
Fixed expenses 48,000
Net operating income $12,000
Required -
a. What is the contribution margin per unit?
b. What is the contribution margin ratio?
c. What is the variable expense ratio?
d. What is the break-even point in dollar sales?
e. What is the margin of safety in dollars?
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