Super Sales Company is the exclusive distributor for a revolutionary bookbag. The product sells for $32 per unit and has a CM ratio of 34%. The companys fixed expenses are $184,960 per year. The company plans to sell 18,000 bookbags this year.

Required:
1.	What are the variable expenses per unit? (Round your answer to 2 decimal places.)

Variable expenses

$

2.	Use the equation method:

a.	What is the break-even point in units and in sales dollars? (Do not round intermediate calculations. Round your answers to the nearest whole number.)

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 $54,400? (Do not round intermediate calculations. Round your answers to the nearest whole number.)

Sales level in units
Sales level in dollars	$

c.

Assume that through negotiation with the manufacturer the Super Sales Company is able to reduce its variable expenses by $4.30 per unit. What is the companys 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.	Repeat (2) above using formula method.

a.	What is the break-even point in units and in sales dollars? (Do not round intermediate calculations. Round your answers to the nearest whole number.)

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 $54,400? (Do not round intermediate calculations. Round your answers to the nearest whole number.)

Sales level in units
Sales level in dollars	$

c.	Assume that through negotiation with the manufacturer the Super Sales Company is able to reduce its variable expenses by $4.30 per unit. What is the companys new break-even point in units and in sales dollars? (Round your answers to the nearest whole number.)

New break-even point in units
New break-even point in sales dollars	$

Super Sales Company is the exclusive distributor for a revolutionary bookbag. The product sells for $32 per unit and has a CM ratio of 34%. The company's fixed expenses are $184,960 per year. The company plans to sell 18,000 bookbags this year. Required 1. What are the variable expenses per unit? (Round your answer to 2 decimal places.) Variable expenses 2. Use the equation method: a. What is the break-even point in units and in sales dollars? (Do not round intermediate calculations. Round your answers to the nearest whole number.) 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 $54,400? (Do not round intermediate calculations. Round your answers to the nearest whole number.) Sales level in units Sales level in dollars c. Assume that through negotiation with the manufacturer the Super Sales Company is able to reduce its variable expenses by $4.30 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. Repeat (2) above using formula method. a. What is the break-even point in units and in sales dollars? (Do not round intermediate calculations. Round your answers to the nearest whole number.) 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 $54,400? (Do not round intermediate calculations. Round your answers to the nearest whole number.) Sales level in units Sales level in dollars c. Assume that through negotiation with the manufacturer the Super Sales Company is able to reduce its variable expenses by $4.30 per unit. What is the company's new break-even point in units and in sales dollars? (Round your answers to the nearest whole number.) New break-even point in units New break-even point in sales dollars