Question
Lindon Company is the exclusive distributor for an automotive product that sells for $20.00 per unit and has a CM ratio of 30%. The company's
Lindon Company is the exclusive distributor for an automotive product that sells for $20.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $93,000 per year. The company plans to sell 16,700 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 $33,000 per year?
4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $2.00 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 $33,000?
1.Variable expense per unit? $
2.Break-even point in units?
Break-even point in dollars sales? $
3.Unit sales needed to attain target profit?
Dollar sales needed to attain target profit? $
4.New break-even point in unit sales
New break-even point in dollar sales? $
Dollar sales need to attain target profit? $
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