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Superstores Company is the exclusive distributor for a high-quality knapsack. The product sells for $120 per unit and has a CM ratio of 50%. The
Superstores Company is the exclusive distributor for a high-quality knapsack. The product sells for $120 per unit and has a CM ratio of 50%. The company's fixed expenses are $720,000 per year. The company plans to sell 34000 knapsacks this year. Required: 1. What are the variable expenses per unit? 2.a. What is the break-even point in units and in sales dollars? Break-even in units Break-even in sales dollars Question 2 Formula Sheet AB KL AB 2 b. What sales level in units and in sales dollars is required to earn an annual profit of $180,000? Sales level in units Sales level in dollars 2.c. What sales level in units is required to earn an annual after-tax profs of $180,000 if the tax rate is 20%? b. Assume that through negotiation with the manufacturer Superstores Company is able to reduce its variable Question 7 Formula Sheet KIL 2.d. Assume that through negotiation with the manufacturer, Superstores Company is able to reduce its variable expenses by $12 per unit. What is the company's new break-even point in units and in sales dollars? Break-even in units Break-even in sales dollars
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