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Last month when Holiday Cfeations, Incorporated, sold 45,000 units, total sales were $180,000, total varlable expenses were $140,400, and fixed expenses were $38,500. Required: 1.
Last month when Holiday Cfeations, Incorporated, sold 45,000 units, total sales were $180,000, total varlable expenses were $140,400, and fixed expenses were $38,500. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can Increase sales volume by 325 units and total sales by $1,300 ? (Do not round intermedlate calculations.) Mauro Products distributes single product, a woven basket whose selling price is $26 per unit and whose varlable expense is $20 per unit. The company's monthly fixed expense is $10,800. 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 intermedlate calculatlons.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round Intermediate calculations.) Lindon Company is the exclusive distributor for an automotive product that sells for $42.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $264,600 per year. The company plans to sell 24,400 units this year. Required: 1. What are the varlable expenses per unit? (Round your "per unlt" answer to 2 declmal 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 $138,600 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its varlable expenses by $4.20 per unit. What is the company's new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $138,600
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