Question 1.
Mauro Products distributes a single product, a woven basket whose
selling price is $18 per unit and whose variable expense is $15 per
unit. The company’s monthly fixed expense is $4,800.
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?
Question 2.
Last month when Holiday Creations, Inc., sold 42,000 units, total sales were $303,000, total variable expenses were $215,130, and fixed expenses were $35,600.
Required:
1. What is the company’s contribution margin (CM) ratio?
2. What is the estimated change in the company’s net operating income if it can increase total sales by $2,500?
Question 1. Mauro Products distributes a single product, a woven basket whose selling price is $18...
Mauro Products distributes a single product, a woven basket whose selling price is $30 per unit and whose variable expense is $25 per unit. The company’s monthly fixed expense is $12,500. 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...
Mauro Products distributes a single product, a woven basket whose selling price is $18 per unit and whose variable expense is $14 per unit. The company’s monthly fixed expense is $10,400. 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...
Mauro Products distributes a single product, a woven basket whose selling price is $18 per unit and whose variable expense is $15 per unit. The company’s monthly fixed expense is $6,000. 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...
Mauro Products distributes a single product, a woven basket whose selling price is $29 per unit and whose variable expense is $26 per unit. The company’s monthly fixed expense is $3,600. 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?
Mauro Products distributes a single product, a woven basket whose selling price is $22 per unit and whose variable expense is $17 per unit. The company’s monthly fixed expense is $5,500. 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?
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 $11,600. 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?
Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and whose variable expense is $24 per unit. The company’s monthly fixed expense is $7,600. 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...
Mauro Products distributes a single product, a woven basket whose selling price is $27 per unit and whose variable expense is $19 per unit. The company’s monthly fixed expense is $10,400. 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...
Mauro Products distributes a single product, a woven basket whose selling price is $12 per unit and whose variable expense is $10 per unit. The company’s monthly fixed expense is $5,400. 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...
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...