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Exercise 6-6 Break-Even Analysis (LO6-5) Mauro Products distributes a single product, a woven basket whose selling price is $22 per unit and whose variable expense
Exercise 6-6 Break-Even Analysis (LO6-5) 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 company's monthly fixed expense is $6,000. 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.) Answer is complete but not entirely correct. 1. 2 Break-even point in unit sales Break-even point in dollar sales Break-even point in unit sales Break-even point in dollar sales $ 2.000 baskets 44,000 48,400 baskets 22 $
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