Question 1: Liman Corporation has a single product whose selling price is $135 and whose variable expense is $54 per unit. The company's monthly fixed expense is $40,400.
Required:
1. Using the equation method, determine for the unit sales that are required to earn a target profit of $4,150.
2. Using the formula method, determine for the dollar sales that are required to earn a target profit of $8,800. (Do not round intermediate calculations.)
Question 2: Maxson Products distributes a single product, a woven basket whose selling price is $20 and whose variable cost is $14.6 per unit. The company's monthly fixed expense is $12,420.
Required:
1. Compute for the company's break-even point in unit sales using the equation method.
2 Compute for the company's 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.)
3 Compute for the company's break-even point in unit sales using the formula method.
4 Compute for the company's break-even point in unit sales using the formula method.