Mauro Products distributes a single product, a woven basket whose selling price is $27 per unit and whose variable expense is $21 per unit. The company’s monthly fixed expense is $16,200. Can you please help me solve the following items: A. Calculate the company’s break-even point in unit sales. B. Calculate the company’s break-even point in dollar sales. (Do not round intermediate calculations.) C. 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.)
Mauro Products distributes a single product, a woven basket whose selling price is $27 per unit and whose variable expense is $21 per unit. The company’s monthly fixed expense is $16,200.
Can you please help me solve the following items:
A. Calculate the company’s break-even point in unit sales.
B. Calculate the company’s break-even point in dollar sales. (Do not round intermediate calculations.)
C. 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.)
The break even sales are calculated as fixed costs divided by contribution Margin Ratio. The contribution Margin is calculated as difference between sales and variable cost.
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