Exercise 57 Compute the BreakEven Point [LO6]
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 breakeven point in unit sales using the equation method.

Breakeven point in unit sales  2,750  baskets 
2. 
Compute for the company’s breakeven 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  .25 
Breakeven point in dollar sales  $ 22,000 
3. 
Compute for the company’s breakeven point in unit sales using the formula method.

Breakeven point in unit sales  2,750  baskets 
4. 
Compute for the company’s breakeven 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  .25 
Breakeven point in dollar sales  $ 22,000 