Lindon Company is the exclusive distributor for an automotive product that sells for $54.00 per unit and has a CM ratio of 30% The company's fixed expenses are $388,800 per year. The company plans to sell 28,600 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 in unit sales 3. What amount of unit sales and dollar sales is required to attain a target profit of $226.800 per year! 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $5.40 per unit. What is the company's new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $226,800? 1 Variable expense per unit 2. Break-even point in units Break-even point in dollar sales 3 Unit sales needed to attain target profit Dollar sales needed to attain target profit 4 Now break-even point in unit sales New break-even point in dollar sales Dollar sales needed to attain target profit S 37 80 24,000 3.000 $ 2.052.000 18.000 S 972.000
Lindon Company is the exclusive distributor for an automotive product that sells for $54.00 per unit and has a CM ratio of 30% The company's fixed expenses are $388,800 per year. The company plans to sell 28,600 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 in unit sales 3. What amount of unit sales and dollar sales is required to attain a target profit of $226.800 per year! 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $5.40 per unit. What is the company's new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $226,800? 1 Variable expense per unit 2. Break-even point in units Break-even point in dollar sales 3 Unit sales needed to attain target profit Dollar sales needed to attain target profit 4 Now break-even point in unit sales New break-even point in dollar sales Dollar sales needed to attain target profit S 37 80 24,000 3.000 $ 2.052.000 18.000 S 972.000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...
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![Lindon Company is the exclusive distributor for an automotive product that sells for $54.00 per unit and has a CM ratio of 30%
The company's fixed expenses are $388,800 per year. The company plans to sell 28,600 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 $226,800 per year!
4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $5.40 per unit. What
is the company's new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of
$226,800?
1 Variable expense per unit
2. Break-even point in units
Break-even point in dollar sales
3 Unit sales needed to attain target profit
Dollar sales needed to attain target profit
4. Now break-even point in unit sales
New break-even point in dollar sales
Dollar sales needed to attain target profit
< Prev
S
37.80
24,000
1.296,000
38.000
$ 2.052.000
18.000
972.000
S
$
T
10
#
Next >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fea4585f0-7a8d-48a8-a11d-faa7a2d53844%2F45fdbe2f-3dd7-436c-83ba-5f63359a11c8%2Fky624sv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Lindon Company is the exclusive distributor for an automotive product that sells for $54.00 per unit and has a CM ratio of 30%
The company's fixed expenses are $388,800 per year. The company plans to sell 28,600 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 $226,800 per year!
4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $5.40 per unit. What
is the company's new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of
$226,800?
1 Variable expense per unit
2. Break-even point in units
Break-even point in dollar sales
3 Unit sales needed to attain target profit
Dollar sales needed to attain target profit
4. Now break-even point in unit sales
New break-even point in dollar sales
Dollar sales needed to attain target profit
< Prev
S
37.80
24,000
1.296,000
38.000
$ 2.052.000
18.000
972.000
S
$
T
10
#
Next >
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