1. Mauro Products distributes a single product, a woven basket whose selling price is $15 and whose variable expense is $12.3 per unit. The company’s monthly fixed expense is $6,480.
Solve for he company’s break-even point in dollar sales using the equation method and the CM ratio.
CM Ratio..... ? %
Break-even point in dollar sales... ?
2. Which of the following adjusting entries involves the recognition of an accrued expense?
recording depreciation on a long-lived asset
recognition of bad debt losses that are expected to result from making sales on credit terms
writing off the portion of an insurance policy that has expired
recognition of salaries owed to employees for work done during the current period that will be paid during the next accounting period