Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

Can you please help me with this attached document.

image text in transcribed 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 13252703309953

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_2

Step: 3

blur-text-image_3

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

Fundamental accounting principle

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

21st edition

1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587

More Books

Students also viewed these Accounting questions