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QUESTION 1 Compute the Break-Even Point Mackson Products distributes a single product, a woven basket; its selling price is $8 and its variable cost is

QUESTION 1

Compute the Break-Even Point

Mackson Products distributes a single product, a woven basket; its selling price is $8 and its variable cost is $6 per unit. The company's monthly fixed expense is $5,500.

Required:

  1. Solve for the company's break-even point in unit sales using the equation method.

  1. Solve for the company's break-even point in sales dollars using the equation method and CM ratio.

  1. Solve for the company's break-even point in unit sales using the contribution margin method.

  1. Solve for the company's break-even point in sales dollars using the contribution margin met and the CM ratio.

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