Company break-even point in unit sales

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Reference no: EM131812283

Question 1: Liman Corporation has a single product whose selling price is $135 and whose variable expense is $54 per unit. The company's monthly fixed expense is $40,400.

Required:

1. Using the equation method, determine for the unit sales that are required to earn a target profit of $4,150.

2. Using the formula method, determine for the dollar sales that are required to earn a target profit of $8,800. (Do not round intermediate calculations.)

Question 2: Maxson Products distributes a single product, a woven basket whose selling price is $20 and whose variable cost is $14.6 per unit. The company's monthly fixed expense is $12,420.

Required:

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

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.)

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

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

Reference no: EM131812283

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