is the exclusive distributor for an automotive product selling for $56.00 per unit with a CM ratio of 30%. The expenses are $411,600 per year and it plans to sell 29,300 units this year. wariable expenses per unit? your "per unit" answer to 2 decimal places. reak-even point in unit sales and in dollar sales? of unit sales and dollar sales is required to attain a target profit of $243,600 per year? chinner the company can reduce its variable expenses by $5.60 per unit. What is the company
is the exclusive distributor for an automotive product selling for $56.00 per unit with a CM ratio of 30%. The expenses are $411,600 per year and it plans to sell 29,300 units this year. wariable expenses per unit? your "per unit" answer to 2 decimal places. reak-even point in unit sales and in dollar sales? of unit sales and dollar sales is required to attain a target profit of $243,600 per year? chinner the company can reduce its variable expenses by $5.60 per unit. What is the company
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 5-14 (Algo) Break-Even and Target Profit Analysis [LO5-1, LO5-4, LO5-6, LO5-7]
Lindon Company is the exclusive distributor for an automotive product selling for $56.00 per unit with a CM ratio of 30%. The
company's fixed expenses are $411,600 per year and it plans to sell 29,300 units this year.
Required:
1. What are the variable expenses per unit?
Note: Round your "per unit" answer to 2 decimal places.
2. What is the break-even point in unit sales and in dollar sales?
3. What amount of unit sales and dollar sales is required to attain a target profit of $243,600 per year?
4. Assume by using a more efficient shipper, the company can reduce its variable expenses by $5.60 per unit. What is the company's
new break-even point in unit sales and dollar sales? What dollar sales are required to attain a target profit of $243,600?
1. Variable expense per unit
2. Break-even point in units
2. Break-even point in dollar sales
3. Unit sales needed to attain target profit
3. Dollar sales needed to attain target profit
4. New break-even point in unit sales
4. New break-even point in dollar sales
4. Dollar sales needed to attain target profit
$
39.20](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbb1f7588-e7d5-4669-93fb-38f498dfa5f2%2F3be5141b-cf38-468f-9f34-6bd8e366972a%2Fvwkbposq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 5-14 (Algo) Break-Even and Target Profit Analysis [LO5-1, LO5-4, LO5-6, LO5-7]
Lindon Company is the exclusive distributor for an automotive product selling for $56.00 per unit with a CM ratio of 30%. The
company's fixed expenses are $411,600 per year and it plans to sell 29,300 units this year.
Required:
1. What are the variable expenses per unit?
Note: Round your "per unit" answer to 2 decimal places.
2. What is the break-even point in unit sales and in dollar sales?
3. What amount of unit sales and dollar sales is required to attain a target profit of $243,600 per year?
4. Assume by using a more efficient shipper, the company can reduce its variable expenses by $5.60 per unit. What is the company's
new break-even point in unit sales and dollar sales? What dollar sales are required to attain a target profit of $243,600?
1. Variable expense per unit
2. Break-even point in units
2. Break-even point in dollar sales
3. Unit sales needed to attain target profit
3. Dollar sales needed to attain target profit
4. New break-even point in unit sales
4. New break-even point in dollar sales
4. Dollar sales needed to attain target profit
$
39.20
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