Lindon Company is the exclusive distributor for an automotive product that sells for $52.00 per unit and has a CM ratio of 30%. Thecompany's fixed expenses are $366,600 per year. The company plans to sell 27,900 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 $210,600 per year?4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $5.20 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 $210,600?1. Variable expense per unit2.Break-even point in unitsBreak-even point in dollar sales3. Unit sales needed to attain target profitDollar sales needed to attain target profit4. New break-even point in unit salesNew break-even point in dollar salesDollar sales needed to attain target profit

Hi student Since there are multiple sub parts, we will answer only first three sub parts.

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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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 per cent? c) What was the company’s net profit for the previous year? (4 marks)d) The sales manager believes that a reduction in the sales price to $2,500 will result in orders for 1,200 more TVs each year. What will the break-even point be if the price is changed?
Mauro Products sells a woven basket for $10 per unit. Its variable expense is $8 per unit and the company's monthly fixed expense is $2,600. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. Note: Do not round intermediate calculations. 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? Note: Do not round intermediate calculations. 1. Break-even point in unit sales 2. Break-even point in dollar sales 3. Break-even point in unit sales 3. Break-even point in dollar sales baskets baskets
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Hi, I need help with the following problem. Thanks!
Fine Leather Enterprises sells its single product for $129.00 per unit. The firm’s fixed operating costs are $473,000 annually, and its variable operating costs are $86.00 per unit. a. Find the firm’s operating break-even point in units. b. Label the x-axis “Sales (units)” and the y-axis “Costs/Revenues ($),” and then graph the firm’s sales revenue, total operating cost, and fixed operating cost functions on these axes. In addition, label the operating break-even point and the areas of loss and profit (EBIT).
Need step by step explanation.Mauro Products distributes a single product, a woven basket whose selling price is $14 per unit and whose variable expense is $12 per unit. The company’s monthly fixed expense is $4,600. Required: Calculate the company’s break-even point in unit sales. Calculate the company’s break-even point in dollar sales. (Do not round intermediate calculations.) If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.)
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