Question

Mauro Products distributes a single product, a woven basket whose selling price is $25 per unit and whose variable expense is $18 per unit. The company’s monthly fixed expense is $14,000. 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.)

Mauro Products distributes a single product, a woven basket whose selling price is $25 per unit and whose variable expense is $18 per unit. The company’s monthly fixed expense is $14,000.

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.)

Answer 1