Question

# Mauro Products distributes a single product, a woven basket whose selling price is \$29 per unit...

Mauro Products distributes a single product, a woven basket whose selling price is \$29 per unit and whose variable expense is \$23 per unit. The company’s monthly fixed expense is \$7,200.

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.)

 Unit Sales Price \$ 29 Less ; Variable Cost per Unit \$ 23 Contribution margin per Unit \$ 6 Monthly Fixed Costs \$ 7,200 1) Break- Even point in unit sales : (Fixed Cost /Contribution per unit) = (7,200/4) 1,800 2) Break- Even point in unit Dollar sales :- (BEP units Sales price per unit ) = (1,800 29) 52,200 If the fixed cost increase by \$ 600 Reverse fixed cost (7,200+600) \$ 7,800 3) Break - even point in unit sales :- (Fixed Cost / contribution per unit ) = (7,800/6) 1,300 4)Break - Even point in dollar sales:- (BEP units Sales price per unit ) = (1,300 23) \$ 29,900

if you have any query please ask me in comment box i am here to helps you don't give direct Thumbs down.if you satisfied my work give Thumbs UP

*******THANK YOU****

#### Earn Coins

Coins can be redeemed for fabulous gifts.