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MAURO PRODUCTS DISTRIBUTES A SINGLE PRODUCT, A WOVEN BASKET WHOSE SELLLING PRICE IS $15 PER UNIT AND WHOSE VARIABLE EXPENSE IS $12 PER UNIT. THE

MAURO PRODUCTS DISTRIBUTES A SINGLE PRODUCT, A WOVEN BASKET WHOSE SELLLING PRICE IS $15 PER UNIT AND WHOSE VARIABLE EXPENSE IS $12 PER UNIT. THE COMPANY MONTHLY FIXED EXPENSE IS 4200.

  1. CALCULATE THE COMPANYS BREAKEVEN POINT IN UNIT SALES.
  2. CALCULATE THE COMPANYS BREAKEVEN POINT IN DOLLAR SALES
  3. IF THE COMPANYS FIXED EXPENSES INCREASE BY $600, WHAT WOULD BECOME THE NEW BREAK EVEN POINT IN UNIT SALES?IN DOLLAR SALES?

1

BREAKEVEN POINT IN UNIT SALES

BASKETS

2

BREAKEVEN POINT IN DOLLAR SALES

3

BREAKEVEN POINT IN UNIT SALES

BASKETS

BREAKEVEN POINT IN DOLLAR SALES

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