EXERCISE 2-14 Break-Even and Target Profit Analysis LO2-3, LO2-4, LO2-5, LO2-6Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unitand has a CM ratio of 30%. The company's fixed expenses are $180,000 per year. The companyplans to sell 16,000 units this year. od oste esas blowRequired:What are the variable expenses per unit?What is the break-even point in unit sales and in dollar sales?What amount of unit sales and dollar sales is required to attain a target profit of $60,000 peryear?1.2.3.ito a ano ba antibob sinu 1504.Assume that by using a more efficient shipper, the company is able to reduce its variabledancexpenses by $4 per unit. What is the company's new break-even point in unit sales and in dol-Foglar sales? What dollar sales is required to attain a target profit of $60,000?

Contribution = Sales - Variable expense Required sales in dollars = Required…

Answered: EXERCISE 2-14 Break-Even Lindon Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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QUESTION 8 Grass is Greener, Inc., plans to charge its customers by the hour and to work 350 hours at $16 per hour. It expects its variable costs to be $6 per hour and fixed costs to be $600. Calculate the number of hours needed to earn $1,800 in operating income? (Round to the nearest hour)
Question 4 Ali Limited produces and sells two products. Product A sells for £12 per unit and has a total variable cost of £7.90, while Product B sells for £17 per unit and has a total variable cost of £11.20. For every 4 units of Product A sold, three of product B are sold. Ali Limited fixed costs are £131,850. Budgeted sales revenue is £428,500. Required: a) b) b) Calculate the Break-Even points in Units. Calculate the Margin of Safety in Units. Evaluate the relevance of Break-Even Analysis in decision making process.
Exercise 18-22 (Algo) CVP analysis with two products LO P3 Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $330 and of each door is $760. The variable cost of each window is $190 and of each door is $480. Fixed costs are $940,800. (1) Compute the weighted-average contribution margin (2) Compute the break-even point in units using the weighted-average contribution margin (3) Compute the number of units of each rpoduct that will be sold at the break-even point
Question 8 of 17 A business has the capacity to manufacture 720 electronic components per annum that it sells for $500 each. The variable costs are $270 per component and the fixed costs are $102,000 per year. a. What quantity should it sell in a year to have a net income of $41,000 per year? Round up to the next whole number b. What is the net income per year at capacity? SAVE PROGRESS SUBMIT AS
Unit VI question 6
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Exercise 5-10 (Algo) Income reporting and break-even analysis LO P2 Sunn Company manufactures a single product that sells for $104 per unit and whose variable costs are $78 per unit. The company's annual fixed costs are $369,200. (1) Prepare a contribution margin income statement at the break-even point. (2) If the company's fixed costs increase by $127,000, what amount of sales (in dollars) is needed to break even? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution margin income statement at the break-even point. SUNN COMPANY Contribution Margin Income Statement (at Break-Even) Sales Amount $ 0 Required 1 Required 2 >

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