Instructions

The company distributes a single product, a woven basket whose selling price is $8 and whose variable cost is $6 per unit. The company's monthly fixed expense is $5,500.

Required

Create and upload an Excel spreadsheet which shows the following (remember to show adequate work and use appropriate formulas):

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 sales dollars 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 sales dollars using formula method and the CM ratio.