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Exercise 6-6 Break-Even Analysis (L06-5] Mauro Products distributes a single product, a woven basket whose selling price is $16 per unit and whose variable expense
Exercise 6-6 Break-Even Analysis (L06-5] Mauro Products distributes a single product, a woven basket whose selling price is $16 per unit and whose variable expense is $13 per unit. The company's monthly fixed expense is $5,100. 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 6-7 Target Profit Analysis (LO6-6] Lin Corporation has a single product whose selling price is $135 per unit and whose variable expense is $54 per unit. The company's monthly fixed expense is $40,400. Required: 1. Calculate the unit sales needed to attain a target profit of $4,150. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $8,800. (Round your intermediate calculations to the nearest whole number.) units 1. Units sales to attain target profit 2. Dollar sales to attain target profit Exercise 6-8 Compute the Margin of Safety (LO6-7] 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 $ 25 $ 18 $ 5,740 970 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. 0.1234 should be entered as 12.34).) 1. Margin of safety (in dollars) 2. Margin of safety percentage %
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