Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lindon Company is the exclusive distributor for an automotive product that sells for $52.00 per unit and has a CM ratio of 30%. The company's

image text in transcribed

Lindon Company is the exclusive distributor for an automotive product that sells for $52.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $366,600 per year. The company plans to sell 27,900 units this year. Required: 1. What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal 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 $210,600 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $5.20 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 $210,600? Answer is not complete 36.40 Variable expense per unit 1 23,500 2 Break-even point in units Break-even point in dollar sales $1,222,000 37,000 Unit sales needed to attain target profit $ 1,924,000 Dollar sales needed to attain target profit New break-even point in unit sales 8,813(X 4 New bre point in dollar sal Dollar 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

CyRM Mastering The Management Of Cybersecurity Internal Audit And IT Audit

Authors: David X Martin

1st Edition

0367757850, 978-0367757854

More Books

Students also viewed these Accounting questions

Question

Solve for x: 2(3x 1)2(x + 5) = 12

Answered: 1 week ago