ChowMein Company is the exclusive Montana distributor of lawn mowers for a small manufacturing company. It sells only one model at $600 per unit and for which ChowMein pays $250. ChowMein's other variable costs amount to $50 per unit. Fixed costs are $2,000. In April, ChowMein 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 for April

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The Answer of ChowMein Company is the exclusive Montana distributor of lawn mowers for a small manufacturing company. It sells only one model at $600 per unit and for which ChowMein pays $250. ChowMein's other variable costs amount to $50 per unit. Fixed costs are $2,000. In April, ChowMein 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 for April

ChowMein Company Is the Exclusive Montana Distributor of Lawn Mowers