Part 1; 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 $4,200.

Required:

3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales?

part 2: Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next months budget appear below Selling price per unit $ 30 Variable expense per unit $ 20 Fixed expense per month $ 7,500 Unit sales per month 1,000 Required: 1. What is the companys margin of safety?

part 3

Engberg Company installs lawn sod in home yards. The companys most recent monthly contribution format income statement follows:

		Amount		Percent of Sales
Sales	$	80,000		100	%
Variable expenses		32,000		40	%
Contribution margin		48,000		60	%
Fixed expenses		38,000
Net operating income	$	10,000

3. Construct a new contribution format income statement for the company assuming a 5% increase in sales.