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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
Mauro Products distributes a single product, a woven basket whose selling price is $14 per unit and whose variable expense is $11 per unit. The company's monthly fixed expense is $3,000 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 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
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(1)-Break even point in unit sales  
Break even point in unit sales = $3,000 / ($14 - $11)
Break even point in unit sales = $3,000 / $3  
Break even point in unit sales = 1,000 units  
(2)-Break even point in dollar sales  
Break even point in dollar sales = 1,000 units x $14
Break even point in dollar sales = $14,000  
(3)-Break even point in unit sales  
Break even point in unit sales = ($3,000 + $600) / ($14 - $11)
Break even point in unit sales = $3,600 / $3
Break even point in unit sales = 1,200 units  
(3)-Break even point in dollar sales  
Break even point in dollar sales = 1,200 units x $14
Break even point in dollar sales = $16,800
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