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    acp19531's Avatar
    acp19531 Posts: 1, Reputation: 1
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    #1

    Nov 2, 2014, 08:40 PM
    Mauro Products
    Mauro Products distributes a single product, a woven basket whose selling price is $15 and whose variable expense is $12 per unit. The company’s monthly fixed expense is $4,200.





    d. Solve for the company’s break-even point in sales dollars using the formula method and the CM ratio.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Nov 2, 2014, 11:23 PM
    well the formula is well know Pv = FC/(SP-VC) but let's reduce it to it's essentials, what is the quantum of contribution margin, the difference between selling price and variable costs needed to offset fixed costs?

    Not hard let's see you efforts
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