Question
Maxson Products distributes a single product, a woven basket whose selling price is $14 and whose variable cost is $10.92 per unit. The companys monthly
| Maxson Products distributes a single product, a woven basket whose selling price is $14 and whose variable cost is $10.92 per unit. The companys monthly fixed expense is $7,084. |
| Required: | |
| 1. | Compute for the companys break-even point in unit sales using the equation method. |
| Break-even point in unit sales | baskets |
| 2. | Compute for the companys break-even point in sales dollars using the equation method and the CM ratio. (Do not round intermediate calculations. Round your CM ratio to 2 decimal places.) |
| CM ratio | |
| Break-even point in dollar sales | $ |
| 3. | Compute for the companys break-even point in unit sales using the formula method. |
| Break-even point in unit sales | baskets |
| 4. | Compute for the companys break-even point in sales dollars using formula method and the CM ratio. (Do not round intermediate calculations. Round your CM ratio to 2 decimal places.) |
| CM ratio | |
| Break-even point in dollar sales | $ |
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3rd Edition
