Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit and has a CM ratio of 30%. The companys

Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit and has a CM ratio of 30%. The companys fixed expenses are $180,000 per year. The company plans to sell 16,000 units this year.1. Variable expenses per unit = 31.50 2. Break-even point in unit sales and in dollar sales = 14,000 and 700,000 3. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by 3.70 per unit. What is the company's new break-even point in unit sales and in dollar sales? Using the equation method 4 What is the breakeven point in unit sales and in dollar sales? using the formula method 5. What amount of unit sales and dollar sales is required to earn an annual profit of 92,500 using the formula method 6. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.70 per unit. What is the company's new break-even point in unit sales and in dollar sales? using formula method

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions