Maxson Products distributes a single product, a woven basket whose selling price is $8 and whose

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.

Break-even point in unit sales

2,750

baskets

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.Omit the "$" sign in your response.)

CM ratio	.25
Break-even point in dollar sales	$ 22,000

3.	Compute for the company’s break-even point in unit sales using the formula method.

Break-even point in unit sales

2,750

baskets

4.	Compute for the company’s break-even 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
Break-even point in dollar sales	$ 22,000