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

Mauro Products distributes a single product, a woven basket whose selling price is $22 per unit and whose variable expense is $19 per unit. The companys monthly fixed expense is $7,800.

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_________ baskets

2.Break-even point in dollar sales_______

3.Break-even point in unit sales_______ baskets

Break-even point in dollar sales________