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Exercise 5-6 (Algo) Break-Even Analysis (L05-5) Mauro Products distributes a single product, a woven basket whose selling price is $20 per unit and whose variable

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Exercise 5-6 (Algo) Break-Even Analysis (L05-5) Mauro Products distributes a single product, a woven basket whose selling price is $20 per unit and whose variable expense is $16 per unit. The company's monthly fixed expense is $11,600. 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.) baskets 1. Break-even point in unit sales 2. Break-even point in dollar sales 3. Break-even point in unit sales Break-even point in dollar sales baskets Exercise 5-8 (Algo) Compute the Margin of Safety (LO5-7) Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below: Selling price per unit Variable expense per unit Fixed expense per month Unit sales per month $ 24 $ 16 $ 6,480 960 Required: 1. What is the company's margin of safety? (Do not round intermediate calculations.) 2. What is the company's margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34). 1. Margin of safety (in dollars) 2. Margin of safety percentage %

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