Compute for the companys break-even point in unit sales, Ask an Expert

Accounting

Maxson Products distributes a single product, a woven basket whose selling price is $8 and whose variable cost is $6 per unit. The company's monthly fixed expense is $5,500.

Required:
1. Compute for the company's break-even point in unit sales using the equation method.

Break-even point in unit sales baskets

2. Compute for the company's break-even point in sales dollars using the equation method and the CM ratio. (Do not round intermediate calculations. Round your CM ratio to 2 decimal places.Omit the "tiny_mce_markerquot; sign in your response.)

CM ratio
Break-even point in dollar sales $

3. Compute for the company's break-even point in unit sales using the formula method.

Break-even point in unit sales baskets

4. Compute for the company's break-even point in sales dollars using formula method and the CM ratio. (Do not round intermediate calculations. Round your CM ratio to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)

CM ratio
Break-even point in dollar sales $

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9413670

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