Q1 A) Lindon Company is the exclusive distributor for an automotive product that sells for $44.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $283.800 per year. The company plans to sell 25,100 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 $151.800 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $4.40 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 $151,800? 1. Variable expense per unit Break-even point in units Break-even point in dollar sales Unit sales needed to attain target profit Dollar sales needed to attain target profit New break-even point in unit sales New break-even point in dollar sales Dollar sales needed to attain target profit $ 30.80 21.500 $ 946,000 151,800 $ 1,452,000 26 18 $ 151,800 B) Piedmont Company segments its business into two regions-North and South. The company prepared the contribution format segmented income statement as shown: Total Company Sales $1,125,000 Variable expenses 765,000 Contribution margin 360,000 Traceable fixed expenses 154,000 Segment margin 206,000 Common fixed expenses 66.000 Net operating income $ 140.000 North $900,000 720,000 180.000 22.000 $ 103,000 South $225,000 45,000 180,000 77,000 $100,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region 3. Compute the break-even point in dollar sales for the South region. (For all requirements, round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar.) 1. Dollar sales for company to break-even $ 687,500 Dollar sales for North segment to break-even Dollar sales for South segment to break-even Ida Sidha Karya Company is a family-owned company located on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $960. Selected data for the company's operations last year follow: 20.000 3.000 Units in beginning inventory Units produced Units sold Units in ending inventory Variable conte per te Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 300 Fixed Fixed manufacturing overhead Pixed selling and administrative 5930.000 $530.000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan (Round your intermediate calculations and final answer to the nearest whole dollar amount.) 2. Assume that the company uses variable costing Compute the unit product cost for one gamelan Absorption costing unit product cost Variable costing unit product cost 930.000 $9,000 2. Required information (The following information applies to the questions displayed below) Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders creditors, and the government. The company has provided the following data: Year 1 Year 2 Year) 210 200 Inventories Beginning units) Ending units) Variable costing net operating income 160 200 $229,000 $290,000 $260,000 The company's fixed manufacturing overhead per unit was constant at $560 for all three years. Required: 1. Calculate each year's absorption costing net operating income. (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Year 3 Variable costing net operating income $ 290,000 $ 279,000 $ 260,000 Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under 28,000 22,400 22.400 absorption costing Absorption costing net operating income $262.000 $ 301 400 $ 282.400