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Maxson Products distributes a single product, a woven basket whose selling price is $8 and whose variable cost is $6 per unit. The company's monthly fixed expense is $5,500. 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.
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 sales dollars using formula method and the CM ratio
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Z-Mart appropriately uses the installment sales method of accounting for its installment sales. During 2009, Z-Mart made installments sales of $300,000 and received payments of $135,000 on those sales. Z-Mart's gross profit margin is 30%.
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Is it necessary to do an entry to correct the prior years' depreciation? Prepare the entry to record depreciation for 2011
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