Exercise 5-6 Break-Even Analysis [LO5-5] Mauro Products distributes a single product, a woven basket whose selling price is $10 per unit and whose variable expense is $7 per unit. The companys monthly fixed expense is $4,200.

Required:

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

2. Calculate the companys break-even point in dollar sales.

3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales?