Question

s 6-10 Saved Help Save & Exit Submi Check my work Lindon Company is the exclusive distributor for an automotive product that sells for $52.00 per unit and has a CM ratio of 30%. The company'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 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 $210,600? 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 treeded to attain target profit New break-even point in unit sales New break-even point in dollar sales Dollar sales nodar to attain tarnet nooit Prey 1 of 5 !! Next > di 12:47 PM ere to search

please answer. thanks

Answer 1

Griven & 52 8 Sale Price per unit cm Ratio - 30% fixed cost = 366600 O Variable fapenses per unit - Sale poice - cm Ratio pood - 52-30% = $36.4 Problem-2 Contribution margin per unit = Sale Price - Variable cost - 52-36.4 " 15.6 Break Even fixed Cost in units cm per unit 366600 15.6 23500 Units

Break even in dollars Fixed cost so Cm Ratio 4 366600 30% 14a 2000 -$1222000 Sales. Problem-3 To attain Target profit $210600 per year Unit ost-fixed cost + Soles = Target profit rool cm per unit s 366600 +2 10600 15.6 00 in dollar Sales 37000 Unit fixed cost + Target pronit cm Ratio & 366600 + 210600 30% 192gooo

4) Problem-4 fixed cost 2 3660 New Variable Cost Per Unit = 36.4-5,2 = 31,2 New Cm per unit = 52-3112 - 90.8 LUNI, 20.8 New cm Ratio - 20.8 x 100 = 40% 59 Break even point in units 366600 - 17625 units in dollars 366600 - 2999 L30% = 916500.

To attain target profit of 2,10,600 in units - 366600 +210600 l = 27750 units incollars 3666007 2 10600 wir 40% N $1443000 OOIX 8.044 143000