Question - 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.
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.
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 sales dollars using formula method and the CM ratio.