tsИсGrawHillLindon Company is the exclusive distributor for an automotive product that sells for $36.00 per unit and has a CM ratio of 30%. Thecompany's fixed expenses are $210,600 per year. The company plans to sell 22,300 units this year.Required:1. What are the variable expenses per unit? (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 $102,600 per year?4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.60 per unit. What is thecompany's new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $102,600?Answer is complete but not entirely correct.$1. Variable expense per unit2. Break-even point in units2. Break-even point in dollar sales3. Unit sales needed to attain target profit3. Dollar sales needed to attain target profit4. New break-even point in unit sales4. New break-even point in dollar sales4. Dollar sales needed to attain target profit$$$$25.20✔19,500702,000 ✓24,000 X864,000 X14,625✔527,100630,000 X< Prev2 of 5#Next >

Break even is the point at which the entity is in a situation of no profit and no loss. The entity…

Answered: Lindon Company is the exclusive…

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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Jasin Company projected operating income ( based on sales of 450,000 units ) for the coming year as follows : Required: 1) At the break - even point , Jefri Company sells 115,000 units and has a fixed cost of RM349,600 . The variable cost per unit is RM4.56 . Estimate the price that Jefri has to charge per unit .
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Super Sales Company is the exclusive distributor for a high-quality knapsack. The product sells for $60 per unit and has a CM ratio of 40%. The company’s fixed expenses are $540,000 per year. The company plans to sell 26,000 knapsacks this year. Required: 1. What are the variable expenses per unit? 2. Use the equation method for the following: a. What is the break-even point in units and in sales dollars? b. What sales level in units and in sales dollars is required to earn an annual profit of $108,000? c. What sales level in units is required to earn an annual after-tax profit of $108,000 if the tax rate is 20%? d. Assume that through negotiation with the manufacturer, Super Sales Company is able to reduce its variable expenses by $3 per unit. What is the company’s new break-even point in units and in sales dollars? (Do not round intermediate calculations. Round your final answers to the nearest whole number.)
Lucid Images Ltd manufactures premium high definition televisions. The firm’s fixed costs are$4,000,000 per year. The variable cost of each TV is $2,000, and the TVs are sold for $3,000 each. Thecompany sold 5,000 TVs during the previous year. (In the following requirements, ignore income taxes)Required:Treat each of the requirements as independent situations:a) Calculate the break-even point in units. b) What will the new break-even point be if fixed costs increase by 10 percent? c) What was the company’s net profit for the previous year? d) The sales manager believes that a reduction in the sales price to $2,500 will result in orders for1,200 more TVs each year. What will the break-even point be if the price is changed?
Al-Naseem Company fixed costs are OMR 120,000 per year. The variable cost of each unit is OMR 6, and sold for OMR 22 per unit. The company sold 9,000 units during the prior year. (Ignore income taxes)Required1.Compute the break-even point in units. Answer 1: ........ 2.How many unit must the company sell to earn a target profit of OMR 20,000? Answer 2: ......
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Choo Choo Corp produces and sells a single product whose selling price is $100.00 per unit and whose variable expense is $48.00 per unit. The company's monthly fixed expense is $244,400. Required: a. Calculate the Break-even Point in sales volume and sales value. Show your work! b. Assume the company's monthly target profit is $5,200. Determine the unit sales to attain that target profit. Show your work! c. Assume the company's expected sales for the period are 5,000 units, calculate the margin of safety in sales value. Show your work!
L. Boyd Company's total fixed costs are $130,000 per year. The company's break-even point in sales dollars is $250,000. If sales are $350,000 next year, what will operating income be? (HINT: Use your knowledge of the ‘ratios’ to solve this. Ignore income taxes.)
Glassman Company sells its one product at $30 per unit. Variable costs are $25 per unit and fixed costs are $50,000 per month1. What is its break-even point in units?2. What is its break-even point in sales dollars?3. What sales, in units, are required to earn $20,000 for the month?4. What sales, in dollars, are required to earn $20,000 for the month?5. Suppose Glassman reduces its selling price to $28 because competitors are charging that amount. What is its new break- even point (a) in units? (b) in dollars?
Sheldon's Company is the exclusive distributor for an automotive product that sells for $56.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $411,600 per year. The company plans to sell 29,300 units this year. Required: Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $5.60 per unit. What is the company's new break-even point in unit sales and in dollar sales? New break-even point in unit sales New break-even point in dollar sales
Mix Electronics purchases 2,400,000 units per year of a component with a purchase price of P50. The fixed cost is P15 per order, and the carrying cost is 30% of the purchase price.a. Calculate the EOQ.b. Calculate the EOQ if the order cost is zero. c. Calculate the EOQ if the order cost is P10 per order.d. What is the implication to the firm if there is a decrease in the order cost?
The selling price of a particular product is $81.00 per unit, the variable expense is $55.00 per unit, and the breakeven sales in dollars is $243,000, what are the total fixed expenses?

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