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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
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 company's monthly fixed expense is
$4,500. Unit sales per month are 2.000.
Required:
a. Calculate the company's monthly break-even point in unit sales and in dollar sales.
b. Calculate the monthly unit sales needed to attain a target profit of $2,100.
c. What is the company's margin of safety as a percentage of its sales?
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