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Super Sales Company is the exclusive distributor for a high-quality knapsack. The product sells for $120 per unit and has a CM ratio of 25%.
Super Sales Company is the exclusive distributor for a high-quality knapsack. The product sells for $120 per unit and has a CM ratio of 25%. The company's fixed expenses are $405,000 per year. The company plans to sell 14,000 knapsacks this year. Required: 1. What are the variable expenses per unit? Variable expenses per 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 $117,000? Sales in units Sales in dollars c. What sales level in units is required to earn an annual after-tax profit of $117,000 if the tax rate is 25%? Sales in units d. Assume that through negotiation with the manufacturer, Super Sales Company is able to reduce its variable expenses by $6 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 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 b. What sales level in units and in sales dollars is required to earn an annual profit of $117,000? Sales in units Sales in dollars c. What sales level in units is required to earn an annual after-tax profit of $117,000 if the tax rate is 25%? Sales in units d. Assume that through negotiation with the manufacturer, Super Sales Company is able to reduce its variable expenses by $6 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
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