Question
Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and whose variable expense is $21 per unit. The
Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and whose variable expense is $21 per unit. The companys monthly fixed expense is $16,800
1. Calculate the companys break-even point in unit sales.
2. Calculate the companys 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?
1. Break-even point in unit sales = 2400 baskets
2. Break-even point in dollars sales = $67,200
3. Break-even point in unit sales = ?????? baskets
Break-even point in dollar sales = ????????
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