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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 30%.
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 30%. The company's fixed expenses are $429,000 per year. The company plans to sell 16,000 knapsacks this year. Requlred: 1. What are the variable expenses per unit? le expenses per unit S 70 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$1,430,000 14.300 b. What sales level in units and in sales dollars is required to earn an annual profit of $117,000? Sales in units 18,200 Sales in dolars$1,820,000 C. What sales level in units is required to earn an annual after-tax profit of $117,000 if the tax rate is 20%? Sales in units 21,840 d. Assume that through negotiation with the manufacturer, Super Sales Company is able to reduce its variable expenses by $9 per unit what is the company's new break-even point in units and in sales dollars? (Dnot 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 12,744 S1,274,359
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