Exercise 5-6 Break-Even Analysis [LO5-5]

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 companys monthly fixed expense is $11,200.

Required:

1. Calculate the companys break-even point in unit sales.

2. Calculate the companys 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.)

1. Break-even point in unit sales 2. Break-even point in dollar sales 3. Break-even point in unit sales baskets baskets Break-even point in dollar sales