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Please help me with question 3. Explain all steps. Show all work Super Sales Company is the exclusive distributor for a high-quality knapsack. The product
Please help me with question 3. Explain all steps. Show all work
Super Sales Company is the exclusive distributor for a high-quality knapsack. The product sells for $60 per unit and has a CM ratio of 40%. The company's fixed expenses are $360,000 per year. The company plans to sell 17,000 knapsacks this year. Required: 1. What are the variable expenses per unit? ed Variable expenses per unit $ 36 2. Use the equation method for the following: a. What is the break-even point in units and in sales dollars? 15,000 Break-even point in units Break-even point in sales dollars 900 000 b. What sales level in units and in sales dollars is required to earn an annual profit of $90,000? 18,750 Sales in units Sales in dollars 1,125,000 c. What sales level in units is required to earn an annual after-tax profit of $90,000 if the tax rate is 25%? Sales in units 20,000 d. Assume that through negotiation with the manufacturer, Super Sales Company is able to reduce its variable expenses by $3 per unit. What is the company's new break-even point in units and in sales dollars? (Do not round intermediate calculations. Round your final answers to the nearest whole number.) 13,333 New break-even point in units New break-even point in sales dollars 800,000 3. Use the formula method for the following: a. What is the break-even point in units and in sales dollars? Break-even point in units Break-even point in sales dollars 10,000 X $ 600,000 b. What sales level in units and in sales dollars is required to earn an annual profit of $90,000? 12,500 Sales in units Sales in dollars $ 750,000 c. What sales level in units is required to earn an annual after-tax profit of $90,000 if the tax rate is 25%? Sales in 13,334 units d. Assume that through negotiation with the manufacturer, Super Sales Company is able to reduce its variable expenses by $3 per unit. What is the company's new break-even point in units and in sales dollars? (Do not round intermediate calculations. Round your final answers to the nearest whole number.) New break-even point in units New break-even point in sales dollars 9,231 x $ 553,860Step by Step Solution
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