Maxson Products distributes a single product, a woven basket whose selling price is $8 and whose variable cost is $6 per unit. The company’s monthly fixed expense is $5,500.
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 method.
4. Solve for the company’s break-even point in sales dollars using formula method and the CM ratio.
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