Question

Mauro Products distributes a single product, a woven basket whose selling price is $30 per unit...

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 intermediate calculations.)

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 intermediate calculations.)

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 intermediate calculations.)

0 0
Add a comment Improve this question Transcribed image text
✔ Recommended Answer
Answer #1

Selling price per unit = $30
Variable cost per unit = $25
Contribution margin per unit = $30 - $25 = $5
Fixed expense = $12,500

1). Breakeven point in units = Fixed expenses / Contribution margin per unit
= $12,500 / $5
= 2500 units

2). Breakeven point in dollar slaes = Breakeven units * Selling price
= 2500 * $30
= $75,000

3). If fixed expenses increase by $600.
Breakeven point in units = ($12500 + $600) / $5
= 2620 units

Breakeven point in dollar slaes = 2620 * $30
= $78,600

Add a comment
Know the answer?
Add Answer to:
Mauro Products distributes a single product, a woven basket whose selling price is $30 per unit...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • Mauro Products distributes a single product, a woven basket whose selling price is $18 per unit...

    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 $28 per unit...

    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...

    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...

    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 $18 per unit...

    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 $14 per unit...

    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...

  • Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit...

    Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and whose variable expense is $21 per unit. The company’s monthly fixed expense is $11,200. 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 $21 per unit...

    Mauro Products distributes a single product, a woven basket whose selling price is $21 per unit and whose variable expense is $18 per unit. The company’s monthly fixed expense is $4,200. 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 $10 per unit...

    Mauro Products distributes a single product, a woven basket whose selling price is $10 per unit and whose variable expense is $8 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 $24 per unit...

    Mauro Products distributes a single product, a woven basket whose selling price is $24 per unit and whose variable expense is $18 per unit. The company’s monthly fixed expense is $12,600. 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...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT