Mauro Products distributes a single product, a woven basket whose selling price is $15 [per unit] and whose variable expense is $12 [per unit]. The companys monthly fixed expense is $3,000.

Required

1. Solve for the companys break-even point in unit sales. Show computations.

2. Determine the companys break-even point in Total Sales Dollars. Show computations.

3. Discuss graphical considerations.

1. Break-even point in Units

2. Break-even in Total Sales Dollars

3. Graphical Considerations

Explain how the lines [discuss which lines change and how they change] on a Cost-Volume-Profit

graph would change if BOTH Variable cost per unit increased AND Total fixed costs increased.

Discuss how these changes would affect the Breakeven Point.