Autoline Corporation is the exclusive distributor for a car accessory that sells for $45.00 per unit and has a CM ratio of 40%. The company's fixed expenses are $300,000 per year. The company plans to sell 12,000 units this year. What are the variable expenses per unit?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....
icon
Related questions
Question

Autoline Corporation is the exclusive distributor for a car accessory that sells for... Please provide answer the general accounting question

Autoline Corporation is the exclusive distributor for a car
accessory that sells for $45.00 per unit and has a CM ratio of
40%. The company's fixed expenses are $300,000 per year.
The company plans to sell 12,000 units this year.
What are the variable expenses per unit?
Transcribed Image Text:Autoline Corporation is the exclusive distributor for a car accessory that sells for $45.00 per unit and has a CM ratio of 40%. The company's fixed expenses are $300,000 per year. The company plans to sell 12,000 units this year. What are the variable expenses per unit?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning