Question
1.Mauro Products has a single product, a woven basket whose selling price is $54, and variable cost is $45 per unit. The company's monthly fixed
1.Mauro Products has a single product, a woven basket whose selling price is $54, and variable cost is $45 per unit. The company's monthly fixed expenses are $26,550.
Required: 1. Compute the company's break-even point in unit sales using the equation method.
2. Compute the company's break-even point in sales dollars using the equation method and the CM ratio.
3. Compute the company's break-even point in unit sales using the contribution margin method.
4. Compute the company's break-even point in sales dollars using the contribution margin method and the CM ratio.
2. Karlik Enterprises has a single product, whose selling price is $24, and variable cost is $18 per unit. The company's monthly fixed expenses are $24,000.
Required: 1. Prepare CVP graph for the company up to a sales level of 8,000 units.
2. Estimate the company's break-even point in unit sales using your CVP graph
3.Molander Corporation sells a sun umbrella used at resort hotels. Data concerning the next month's budget are given below:
Selling price $48per unit
Variable expense $28 per unit
Fixed expense $30,000 per month
Unit sales 2,000units per month
Required:
1.Compute the company's margin of safety.
2.Compute the company's margin of safety as a percentage of its sales.
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