Question: Maxson Products distributes a single product, a woven basket whose selling price is $12 and whose variable cost is $10.44 per unit. The companys monthly

Maxson Products distributes a single product, a woven basket whose selling price is $12 and whose variable cost is $10.44 per unit. The companys monthly fixed expense is $2,652.

Required:
1. Compute for the companys break-even point in unit sales using the equation method.

Break-even point in unit sales

baskets

2.

Compute for the companys break-even point in sales dollars using the equation method and the CM ratio. (Do not round intermediate calculations. Round your CM ratio to 2 decimal places. Omit the "$" sign in your response.)

CM ratio
Break-even point in dollar sales

$

3. Compute for the companys break-even point in unit sales using the formula method.

Break-even point in unit sales baskets

4.

Compute for the companys break-even point in sales dollars using formula method and the CM ratio. (Do not round intermediate calculations. Round your CM ratio to 2 decimal places. Omit the "$" sign in your response.)

CM ratio
Break-even point in dollar sales $

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