Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer this while showing work and maybe explaining please please answer this showing work Lindon Company is the exclusive distributor for an automotive product

please answer this while showing work and maybe explaining please

image text in transcribed

please answer this showing work

image text in transcribed

Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit and has a CM ratio of 30%. The company's fixed expenses are $180,000 per year. The company plans to sell 16,000 units this year. Answer the following questions (Show your work): 1. What are the variable expenses per unit? 2. What is the break-even point in units? 3. What amount of dollar sales is required to earn an annual profit of $60,000 ? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $4 per unit. What is the company's new break-even point in units? 5. Based on the BE point calculated in question \#2 and the planned sales given in the information at the top of the page, what is the company's margin of safety in dollars? Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit and has a CM ratio of 30%. The company's fixed expenses are $180,000 per year. The company plans to sell 16,000 units this year. Answer the following questions (Show your work): 1. What are the variable expenses per unit? 2. What is the break-even point in units? 3. What amount of dollar sales is required to earn an annual profit of $60,000 ? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $4 per unit. What is the company's new break-even point in units? 5. Based on the BE point calculated in question \#2 and the planned sales given in the information at the top of the page, what is the company's margin of safety in dollars? Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit and has a CM ratio of 30%. The company's fixed expenses are $180,000 per year. The company plans to sell 16,000 units this year. Answer the following questions (Show vour work): 1. What are the variable expenses per unit? 3. What amount of dollar sales is required to earn an annual profit of $60,000 ? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $4 per unit. What is the company's new break-even point in units? 5. Based on the BE point calculated in question \#2 and the planned sales given in the information at the top of the page, what is the company's margin of safety in dollars

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

The Price Of Football Understanding Football Club Finance

Authors: Kieran Maguire

3rd Edition

1788216830, 978-1788216838

More Books

Students also viewed these Accounting questions