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Super Sales Company is the exclusive distributor for a high-quality knapsack. The product sells for $100 per unit and has a CM ratio of 40%.
Super Sales Company is the exclusive distributor for a high-quality knapsack. The product sells for $100 per unit and has a CM ratio of 40%. The company's fixed expenses are $550,000 per year. The company plans to sell 15,000 knapsacks this year. Required: eBook a. What is the break-even point in units and in sales dollars? Print References Break-even point in units 11,250 Break-even point in sales dollars $1,125,000 b. What sales level in units and in sales dollars is required to earn an annual profit of $120,000? ok Sales in units Sales in dollars 13,550 $1,335,000 it nces c. What sales level in units is required to earn an annual after-tax profit of $120,000 if the tax rate is 20%? Sales in units 14,125 d. Assume that through negotiation with the manufacturer, Super Sales Company is able to reduce 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.) 10,000 New break-even point in units New break-even point in sales dollars $1,000,000
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