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

Required:

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

2. Solve for the company's break-even point in sales dollars using the equation method and the

CM ratio.

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

4. Solve for the company's break-even point in sales dollars using formula method and the CM ratio.

(B) The management of Osman Copy, a photocopying center located on University Avenue, has compiled the following data to use in preparing its budgeted balance sheet for next year:

Ending Balances

Cash . . . . . . . . . . . . . . . . . . . . . . . . . ?

Accounts receivable . . . . . . . . . . . . . $6,500

Supplies inventory . . . . . . . . . . . . . . . $2,100

Equipment . . . . . . . . . . . . . . . . . . . . . $28,000

Accumulated depreciation . . . . . . . . . $9,000

Accounts payable . . . . . . . . . . . . . . . $1,900

Common stock . . . . . . . . . . . . . . . . . $4,000

Retained earnings . . . . . . . . . . . . . . ?

The beginning balance of retained earnings was $21,000, net income is budgeted to be $8,600, and dividends are budgeted to be $3,500.

Required:

Prepare the company's budgeted balance sheet.