Answered step by step
Verified Expert Solution
Question
1 Approved Answer
05 Uindon Company is the exclusive distributor for an automotive product selling for $58.00 per unit with a CM ratio of 30%. The company's fixed
05
Uindon Company is the exclusive distributor for an automotive product selling for $58.00 per unit with a CM ratio of 30%. The company's fixed expenses are $435,000 per year and it plans to sell 30,000 units this year Required: 1. What are the vatiable expenses per unit? Note: Round your "per unit" answer to 2 decimal places. 2. What is the break-even point in unit sales and in dollar sales? 3 What amount of unit sales and dollar sales is required to attain a target profit of $261,000 per year? 4. Assume by using a more efficient shipper, the company can reduce its variable expenses by $580 per unit What is the company new break-even point in unit sales and dollar sales? What dollar sales are required to attain a target profit of $261,000 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started