EXERCISE 5-6 Compute the Break-Even Point (205) Mauro Products distributes a single product, a woven basket whose selling price is $15 and whose variable expense is $12 per unit. The company's monthly fixed expense is $4,200. 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 dollar sales 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 dollar sales using the formula method and the CM ratio. EXERCISE 5-7 Compute the Lovel of Sales Required to Attain a Target Profit (106) Lin Corporation has a single product whose selling price is $120 and whose variable expense is $80 per unit. The company's monthly fixed expense is $50,000, Required: 1. Using the equation method, solve for the unit sales that are required to earn a target profit of $10,000 2. Using the formula method, solve for the unit sales that are required to carn a target profit of $15,000 EXERCISE 5-8 Compute the Margin of Safety (107) Molander Corporation is a distributor of a sun umbrella used at resort hotels Data concerning tho next month's budget appear below: Selling price $30 per unit Variable expondos $20 per unit Fixed expenses $7,500 per month Unit sales 1,000 units per month Required: 1. Compute the company's margin of safety. 2. Compute the company's margin of safety as a percentage of its sales. EVGA