Question

Не Exercise 6-6 Break-Even Analysis (LO6-5) Mauro Products distributes a single product, a woven basket whose selling price is $22 per unit and whose variable expense is $19 per unit. The company's monthly fixed expense is $7,800. 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 intermediate calculations.) baskets 1. Break-even point in unit sales 2. Break-even point in dollar sales 3. Break-even point in unit sales Break-even point in dollar sales baskets

Answer 1

Answert margin = sales variable cost Contribution Sales » » Break Even sales It is the volume of sales at which the total cost is equal total elevenue. Break Evenedes (in units) = foxed Expense: Ý CS Scanned with Scanned with CamScanner contzübetton margin poronto

→ → * * Break Even Sales Candelars) = fixed Expense contribution morgen Ratro Contribeteon margin = Conturbution fatio - margin - Sales Sales Price per unit $22 Legs Novetable cost perpunit $19 Contribution margin percent $3 Contribution margin fatto $3 = 0.1363 L = 13.63 % fixed cost $7,800 Break Even Sales Con unte) * * → * anso r($71800) 9.600 Bastos Scanned With CamScanner

ansa Break even suled (in dolby [$7,800] $572.26 [ $13.637857826 Anda Revised fixed Expense ☆ Boreak even sales can write) $8400 = 12,90 Baskets Break Even Sales (indollare) > = $84200 B. 63% $ 616.28 CS Scanned with = CamScanner