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bija089 [108]
3 years ago
7

Maxson Products distributes a single product, a woven basket whose selling price is $8 and whose variable cost is $6 per unit. T

he company’s monthly fixed expense is $5,500.Required:1. Solve for the company’s break-even point in unit sales using the equation method.2. Solve for the company’s break-even 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
Business
1 answer:
alina1380 [7]3 years ago
8 0

Answer:

Explanation:

(SP-VC)*Q

$(8-6)Q = $5500

Q=5500/2

Break even quantity = 2750 units per month

2. Sales = $8 x 2750 = $ 22,000

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