Contribution margin=Sales-Variable cost
=(25-18)=$7 per unit
1.Breakeven point=Fixed expenses/Contribution margin
=(15400/7)=2200 baskets
2.Breakeven point==(2200*25)=$55,000
3.New fixed expenses=(15400+600)=16000
Hence new breakeven point=(16000/7)=2285.71 baskets(Approx)
Breakeven point=(2285.71*25)=$57142.86(Approx).
Mauro Products distributes a single product, a woven basket whose selling price is $25 per unit...
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