1. Break-even point in unit sales = Total Fixed expense /
Contribution per unit
where, contribution per unit = Selling price per unit - Variable
expense per unit = $18 - $13 = $5 per unit.
Break-even point in unit sales = Total Fixed expense / Contribution per unit = $14,500 / $5 per unit = 2,900 baskets.
2. Break-even point in dollar sales = Break-even point in unit sales * Selling price per unit = 2,900 * $18 per unit = $52,200.
3. New Break-even point in unit sales = New fixed expenses / Contribution per unit = ( $13,500 + $600 ) / $5 = 3,020 baskets.
New Break-even point in dollar sales = New Break-even point in unit sales * Selling price per unit = 3,020 * $18 = $54,360.
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 $8,800. 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...
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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...
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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 $12 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? (Do not round...
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Mauro Products distributes a single product, a woven basket whose selling price is $26 per unit and whose variable expense is $21 per unit. The company's monthly fixed expense is $7,000. 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 and whose variable expense is $19 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...