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Question - Mauro Products distributes a single product, a woven basket whose selling price is $13 per unit and whose variable expense is $11 per unit. The company's monthly fixed expense is $2,200.
Required -
1. Calculate the company's break-even point in unit sales.
2. Calculate the company's break-even point in dollar sales.
3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales?
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What will be the overall effect on net operating income of the company as a whole - Which choice would be the best in order to break-even?
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