3.2

. If fixed les dollars? b. What is Lasley Cash's contribution margin ratio? Its variable cost ratio? C. Assume that Lasley Cash, Ltd. currently operates at a loss. What actions could managers take to lower the breakeven point and begin earning a profit? 3.2 (LO 1) Breakeven analysis Scott Confectionery sells its Stack-o-Choc candy bar for $0.80. The variable cost per unit for the candy bar is $0.45; total fixed costs are $175,000. Required a. What is the contribution margin per unit for the Stack-o-Choc candy bar? b. What is the contribution margin ratio for the Stack-o-Choc candy bar? c. What is the breakeven point in units? In sales dollars? d. If an increase in chocolate prices causes the variable cost per unit to increase to $0.55, what will happen to the breakeven point? 3.3 (LO 1) Breakeven analysis Julianna Abdallah owns and operates FirstCakes, a bakery that cre- ates personalized birthday cakes for a child's first birthday. The cakes, which sell for $40 and feature an edible picture of the child, are shipped throughout the country. A typical month's results are as follows: Sales revenue $840.000