Question: ABC distributes a single product, a woven basket whose selling price is $10 and whose variable cost is S6 per unit. The company's monthly fixed

ABC distributes a single product, a woven basket whose selling price is $10 and whose variable cost is S6 per unit. The company's monthly fixed expense is $10,000.

Required:

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

2. Solve for the company's breakeven point in sales dollars using the equation method and the CM ratio.

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

4. Solve for the company's break-even point in sales dollars using formula method and the CM ratio

The equation method yields the break-even point in unit sales, Q as follows __________ .

The equation method can be used to compute the break-even point in sales dollars as follows________ .

The formula method gives an answer identical to the equation method for the break-even point in unit sales _________ .

The formula method also gives an answer that is identical to the equation method for the break-even point in dollar sales: [CM Ration = CM per unit/ Sell Price per unit CM Ratio =4/10 = 4)

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