Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey Of Accounting

Authors: Carl S. Warren, Amanda Farmer, Jefferson P. Jones

10th Edition

0357900294, 9780357900291

Students also viewed these Accounting questions

Question

What do you see as your biggest strength/weakness?

Answered: 1 week ago

Question

1. To understand how to set goals in a communication process

Answered: 1 week ago