In: Accounting
Mauro Products distributes a single product, a woven basket whose selling price is $11 and whose variable expense is $8.91 per unit. The company’s monthly fixed expense is $5,016.
Required:
1. Solve for the company’s break-even point in unit sales using the equation method. (Do not round your intermediate calculations.)
2. Solve for the company’s break-even point in dollar sales using the equation method and the CM ratio. (Do not round intermediate calculations. Round "CM ratio percent" to nearest whole percent.)
CM RATIO: ?
Break-Even point in dollar sales:?
3. Solve for the company’s break-even point in unit sales using the formula method. (Do not round your intermediate calculations.)
4. Solve for the company’s break-even point in dollar sales using formula method and the CM ratio. (Do not round intermediate calculations. Round "CM ratio percent" to nearest whole percent.)
CM RATIO: ?
Break-Even point in dollar sales:?
Note
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