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Can you please help me with this attached document. Lindon Company is the exclusive distributor for an automotive product that sells for $28.50 per unit
Can you please help me with this attached document.
Lindon Company is the exclusive distributor for an automotive product that sells for $28.50 per unit and has a CM ratio of 30%. The company's fixed expenses are $164,160 per year. The company plans to sell 10,400 units this year. Required: 1. What are the variable expenses per unit? (Round your answer to 2 decimal places.) Variable Expense: 2. Use the equation method: a. What is the break-even point in unit sales and in dollar sales? Break-even point in unit sales: Break-even point in dollar sales: b. What amount of unit sales and dollar sales is required to earn an annual profit of $42,750? Sales level in units: Sales level in dollars: c. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $2.85 per unit. What is the company's new break-even point in unit sales and in dollar sales? New break-even point in unit sales: New break-even point in dollar sales: 3. Repeat (2) above using the formula method. a. What is the break-even point in unit sales and in dollar sales? Break-even point in unit sales: Break-even point in dollar sales: b. What amount of unit sales and dollar sales is required to earn an annual profit of $42,750? Sales level in units: Sales level in dollars: c. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $2.85 per unit. What is the company's new break-even point in unit sales and in dollar sales? New break-even point in unit sales: New break-even point in dollar sales: 0 test 13252703309953Step by Step Solution
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