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Super Sales Company is the exclusive distributor for a high quality knapsack. The product sells for $80 per unit and has a CM ratio of
Super Sales Company is the exclusive distributor for a high quality knapsack. The product sells for $80 per unit and has a CM ratio of 40%. The company's fixed expenses are $360,000 per year. The company plans to sell 13.000 knapsacks this year Required: 1. What are the variable expenses per unit? Vanate expenses por unit 2. Use the equation 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 b. What sales level in units and in sales dollars is required to earn an annual profit of $96,000? Sales in units Sales in dollars c. What sales level in units is required to earn an annual after tax profit of $96,000 if the tax rate is 25%? S d. Assume that through negotiation with the manufacturer, Super Sales Company is able to recuce its variable expenses by $4 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.) Now break-even point in units New break even point in sales dollars
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