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Lindon Company is the exclusive distributor for an automotive product selling for $48.00 per unit with a CM ratio of 30%. The company's fixed expenses are $324,000 per year and it plans to sell 26,500 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 $180,000 per year? 4. Assume by using a more efficient shipper, the company can reduce its variable expenses by $4.80 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 $180,000? 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

Lindon Company is the exclusive distributor for an automotive product selling for $48.00 per unit with a CM ratio of 30%. The company's fixed expenses are $324,000 per year and it plans to sell 26,500 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 $180,000 per year? 4. Assume by using a more efficient shipper, the company can reduce its variable expenses by $4.80 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 $180,000? 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

FINANCIAL ACCOUNTING
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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Lindon Company is the exclusive distributor for an automotive product selling for $48.00 per unit with a CM ratio of 30%. The company's fixed expenses are $324,000 per year and it plans to sell 26,500 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 $180,000 per year? 4. Assume by using a more efficient shipper, the company can reduce its variable expenses by $4.80 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 $180,000? 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
Transcribed Image Text:Lindon Company is the exclusive distributor for an automotive product selling for $48.00 per unit with a CM ratio of 30%. The company's fixed expenses are $324,000 per year and it plans to sell 26,500 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 $180,000 per year? 4. Assume by using a more efficient shipper, the company can reduce its variable expenses by $4.80 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 $180,000? 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
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