Maxson products distributes a single product a woven basket

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Reference no: EM13482049

Compute the Break-Even Point [LO6]

Maxson Products distributes a single product, a woven basket whose selling price is $26 and whose variable cost is $20.54 per unit. The company's monthly fixed expense is $8,736.


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

  Break-even point in unit sales baskets

2.

Compute for the company's 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 company's break-even point in unit sales using the formula method.

  Break-even point in unit sales baskets

4.

Compute for the company's 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 $

Reference no: EM13482049

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