Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and whose variable expense is $24 per unit. The company's monthly fixed expense is $11,200.

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. Round "CM ratio percent" to nearest whole percent.)

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 your intermediate calculations.)

Break-even point in unit sales

baskets

2.

Break-even point in dollar sales

3.

Break-even point in unit sales

baskets

Break-even point in dollar sales

Lindon Company is the exclusive distributor for an automotive product that sells for $34.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $193,800 per year. The company plans to sell 21,600 units this year.

Required:

1. What are the variable expenses per unit?

2. What is the break-even point in unit sales and in dollar sales?

3. What amount of unit sales and dollar sales is required to attain a target profit of $91,800 per year?

4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.40 per unit. What is the company's new break-even point in unit sales and in dollar sales?

1.

Variable expense per unit

$23.80

2.

Break-even point in units

19,000

Break-even point in dollar sales

$646,000

3.

Unit sales needed to attain target profit

28,000

Dollar sales needed to attain target profit

$952,000

4.

New break-even point in unit sales

New break-even point in dollar sales

Doller sales needed to attain target profit

Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and whose variable expense is $24 per unit. The company's monthly fixed expense is $11,200. Required: 1. Calculate the company's breakeven point in unit sales. 2. Calculate the company's breakeven point in dollar sales. (Do not round intermediate calculations. Round "CM ratio percent" to nearest whole percent.) 3. If the company's fixed expenses increase by $600, what would become the new breakeven point in unit sales? In dollar sales? (Do not round your intermediate calculations.) Break-even point in unit sales 2. Break-even point in dollar sales 3. Break-even point in unit sales baskets baskets Break-even point in dollar sales Lindon Company is the exclusive distributor for an automotive product that sells for $34.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $193,800 per year. The company plans to sell 21,600 units this year. Required: 1. What are the variable expenses per unit? 2. What is the breakeven point in unit sales and in dollar sales? 3. What amount of unit sales and dollar sales is required to attain a target profit of $91,800 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.40 per unit. What is the company's new breakeven point in unit sales and in dollar sales? 1. Variable expense per unit $23.80 2. Break-even point in units 19,000 Break-even point in dollar sales 3. Unit sales needed to attain target profit $646,000 28,000 Dollar sales needed to attain target profit $952,000 4. New break-even point in unit sales New break-even point in dollar sales Doller sales needed to attain target profit