What is the break-even point in dollar sales

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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?

Reference no: EM132896755

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