Mauro Products distributes a single product, a woven basket whose selling price is $23 per unit and whose variable expense is $20 per unit. The company’s monthly fixed expense is $6,600.
Required:
1. Calculate the company’s break-even point in unit sales.
2. Calculate the company’s break-even point in dollar sales. (Do not round intermediate calculations.)
3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.)
|
1 | ||
Fixed expense | 6600 | |
Divide by Unit Contribution margin | 3 | =23-20 |
Break-even point in unit sales | 2200 | baskets |
2 | ||
Break-even point in dollar sales | 50600 | =2200*23 |
3 | ||
Fixed expense | 7200 | =6600+600 |
Divide by Unit Contribution margin | 3 | =23-20 |
Break-even point in unit sales | 2400 | baskets |
Break-even point in dollar sales | 55200 | =2400*23 |
Mauro Products distributes a single product, a woven basket whose selling price is $23 per unit and whose variable expen...
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Mauro Products distributes a single product, a woven basket whose selling price is $14 per unit and whose variable expense is $10 per unit. The company’s monthly fixed expense is $12,000. Required: 1. Calculate the company’s break-even point in unit sales. 2. Calculate the company’s break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round...