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Boise Company is the exclusive Montana distributor of lawnmowers for a small manufacturing company....

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Accounting

Boise Company is the exclusive Montana distributor of lawnmowers for a small manufacturing company. It sells only one modelat $650 per unit and for which Boise pays $250. Boise's othervariable costs amount to $50 per unit. Fixed costs are $2,800. InApril, Boise sold 15 lawn mowers and it sold 20 in May.

Required:

Calculate the following values:

a.

Monthly break-even point in sales dollars

b.

Monthly break-even point in units

c.

Monthly income for April

d.

Monthly income for May

e.

Margin of safety in units for April

Answer & Explanation Solved by verified expert
4.2 Ratings (604 Votes)
Solution a Monthly breakeven point in sales dollars 5200 b Monthly breakeven point in units 8 units c Monthly income for April 2450 d Monthly income for May 4200 e Margin of    See Answer
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Transcribed Image Text

In: AccountingBoise Company is the exclusive Montana distributor of lawnmowers for a small manufacturing company. It...Boise Company is the exclusive Montana distributor of lawnmowers for a small manufacturing company. It sells only one modelat $650 per unit and for which Boise pays $250. Boise's othervariable costs amount to $50 per unit. Fixed costs are $2,800. InApril, Boise sold 15 lawn mowers and it sold 20 in May.Required:Calculate the following values:a.Monthly break-even point in sales dollarsb.Monthly break-even point in unitsc.Monthly income for Aprild.Monthly income for Maye.Margin of safety in units for April

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