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Please help me find dollar sales needed to attain target profit. Lindon Company is the exclusive distributor for an automotive product that sells for $56.00
Please help me find dollar sales needed to attain target profit.
Lindon Company is the exclusive distributor for an automotive product that sells for $56.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $411,600 per year. The company plans to sell 29,300 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 $243,600 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $5.60 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 $243,600? Answer is complete but not entirely correct. Variable expense per unit $ 1 39.20 Break-even point in units 2 24,500 $1,372,000 Break-even point in dollar sales Unit sales needed to attain target profit 39,000 $ 2,184,000 Dollar sales needed to attain target profit New break-even point in unit sales 4 18,375 1,029,000 New break-even point in dollar sales Dollar sales needed to attain target profit 2,184,000 xStep by Step Solution
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