Equation Method

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Equation Method

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Lin Corporation has a single product whose selling price is $120 and whose variable expense is $80 per unit. The company’s monthly fixed expense is $50,000
1. Using the equation method, solve for the unit sales that are required to earn a target profit of $10,000
2. Using the format method, solve for the unit sales that are required to earn a target profit of $15,000

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Mauro Products distributes a single product, a woven basket whose selling prices are $15 and whose variable expense is $12 per unit. The company’s monthly fixed expense is $4,200.
1. Solve for the company’s breakeven point in unit sales using the equation method.
2. Solve for the companies breakeven point in sales dollars using the equation method and the CM ratio.
3. Solve for the company’s breakeven point in unit sales using the format method
4. Solve for the company’s breakeven point in sales dollars using the format method and the cm ration.