Mauro Products sells a woven basket for $14 per unit. Its variable expense is $12 per unit and the company's monthly fixed expense is $3,400. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. Note: 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? Note: Do not round intermediate calculations. 1. Break-even point in unit sales 2. Break-even point in dollar sales 3. Break-even point in unit sales 3. Break-even point in dollar sales baskets baskets
Mauro Products sells a woven basket for $14 per unit. Its variable expense is $12 per unit and the company's monthly fixed expense is $3,400. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. Note: 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? Note: Do not round intermediate calculations. 1. Break-even point in unit sales 2. Break-even point in dollar sales 3. Break-even point in unit sales 3. Break-even point in dollar sales baskets baskets
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Urmila ben
Transcribed Image Text:Mauro Products sells a woven basket for $14 per unit. Its variable expense is $12 per
unit and the company's monthly fixed expense is $3,400.
Required:
1. Calculate the company's break-even point in unit sales.
2. Calculate the company's break-even point in dollar sales.
Note: 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?
Note: Do not round intermediate calculations.
1. Break-even point in unit sales
2. Break-even point in dollar sales
3. Break-even point in unit sales
3. Break-even point in dollar sales
baskets
baskets
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