BRIEF EXERCISE $8-4$

Computing the Break$-$Even Point $[$LO$2-$ CC$6]$

Manos Products has a single product, a garden chair whose selling price is $$60$ and variable cost is $$50$ per unit. The company's monthly fixed expenses are $$25,000.$

Required:

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

Compute the company's break$-$even point in sales dollars using the equation method and the CM ratio.

Compute the company's break$-$even point in unit sales using the contribution margin method.

Compute the company's break$-$even point in sales dollars using the contribution margin method and the CM ratio.