Compute the break-even point lo6 maxson products, Ask an Expert

Accounting

Compute the Break-Even Point [LO6]

Maxson Products distributes a single product, a woven basket whose selling price is $26 and whose variable cost is $20.54 per unit. The company's monthly fixed expense is $8,736.

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.)

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.)

CM ratio
Break-even point in dollar sales	$

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9797225

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