Question
1-Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and whose variable expense is $24 per unit. The
1-Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and whose variable expense is $24 per unit. The company's monthly fixed expense is $11,200.
Required:
1. Calculate the company's break-even point in unit sales.
2. Calculate the company's break-even point in dollar sales.(Do not round intermediate calculations. Round "CM ratio percent" to nearest whole percent.)
3. If the company's fixed expense
1.
Break-even point in unit sales
baskets
2.
Break-even point in dollar sales
3.
Break-even point in unit sales
baskets
Break-even point in dollar sales
Lindon Company is the exclusive distributor for an automotive product that sells for $34.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $193,800 per year. The company plans to sell 21,600 units this year.
Required:
1. What are the variable expenses per unit?
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 $91,800 per year?
4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.40 per unit. What is the company's new break-even point in unit sales and in dollar sales?
1.Variable expense per unit
2.Break-even point in unitsBreak-even point in dollar sales
3.Unit sales needed to attain target profitDollar sales needed to attain target profit
4.New break-even point in unit sales New break-even point in dollar sales Doller sales needed to attain target profit
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