1. Break even point in unit sales = fixed cost / contribution margin per unit
= $ 16,100 / ( selling price per unit - variable cost per unit)
= $ 16,100 / ( $ 29 - $ 22)
= 2300 baskets
2. contribution margin ratio = contribution margin per unit/ selling price per unit
= $ 7/ 29*100
=0.24137931
= 24.13793103%
Break even point in unit sales = fixed cost / contribution margin ratio
= $ 16,100 / 24.13793103%
= $ 66,700
3.
Break even point in unit sales = fixed cost / contribution margin per unit
= $ 16,700 / ( selling price per unit - variable cost per unit)
= $ 16,700 / ( $ 29 - $ 22)
= 2,386 baskets
4. contribution margin ratio = contribution margin per unit/ selling price per unit
= $ 7/ 29*100
=0.24137931
= 24.13793103%
Break even point in unit sales = fixed cost / contribution margin ratio
= $ 16,700 / 24.13793103%
= $ 69,185.71
Mauro Products distributes a single product, a woven basket whose selling price is $29 per unit...
Mauro Products distributes a single product, a woven basket whose selling price is $29 per unit and whose variable expense is $22 per unit. The company's monthly fixed expense is $16,100. 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...
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