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Mauro Products distributes a single product, a woven basket whose selling price is $22 per unit and whose variable expense is $16 per unit. The
Mauro Products distributes a single product, a woven basket whose selling price is $22 per unit and whose variable expense is $16 per unit. The company's monthly fixed expense is $12,000. 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. Break-even point in unit sales 3,000 ( baskets 2. Break-even point in dollar sales 3. Break-even point in unit sales $ 66,000 3,150 baskets 3. Break-even point in dollar sales $ 69,300 Last month when Holiday Creations, Incorporated, sold 39,000 units, total sales were $156,000, total variable expenses were $131,040, and fixed expenses were $39,300. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase sales volume by 650 units and total sales by $2,600? (Do not round intermediate calculations.) Answer is complete but not entirely correct. 1. Contribution margin ratio 2. Estimated change in net operating income 23% 621 Re
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