ezto.mheducation.com Chapter 5 Homework Chapter 5 Homework Chapter 5 Homework |

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ezto.mheducation.com Chapter 5 Homework Chapter 5 Homework Chapter 5 Homework | Chegg.com 1.96 in percent- Google Search 4. 10.00 points Mauro Products distributes a single product, a woven basket whose selling price is $14 and whose variable expense is $12.04 per unit. The company's monthly fixed expense is $4,116. Required: 1. Solve for the company's break-even point in unit sales using the equation method. (Do not round your intermediate calculations.) Break-even point in unit sales 2,100 baskets 2. Solve for the company's break-even point in dollar sales using the equation method and the CM ratio. (Do not round intermediate calculations. Round "CM ratio percent" to nearest whole percent.) CM ratio 99 % Break-even point in dollar sales 3. Solve for the company's break-even point in unit sales using the formula method. (Do not round your intermediate calculations.) Break-even point in unit sales baskets 4. Solve for the company's break-even point in dollar sales using the formula method and the CM ratio. (Do

Explanation / Answer

1) break even point in unit sales 2,100 baskets (selling price - variable expense)* units=fixed expense (14 -12.04)*x             = 4116 1.96x                            = 4,116 x                               = 2100 units 2) CM ratio 14% break even point in dollar sales 29400 1500 units as caluclated above so BEP in sales = 2100*14 3) break even point in unit sales 2,100 baskets formual = fixed cost/contribution margin per unit 4116/1.96 2100 4) CM ratio 14% break even point in dollar sales 29400 CM ratio = contribution/selling price per unit 1.96/14 14% BEP(sales) = Fixed cost/cm ratio 4116/14% 29400

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