1 | |||||
Variable expense per unit | Sales per unit*(1-CM ratio) | ||||
Variable expense per unit | 38*(1-0.30) | ||||
Variable expense per unit | $26.60 | ||||
2 | |||||
Break-even point in unit sales | Fixed expense/Contribution margin per unit | ||||
Break-even point in unit sales | 228,000/(38-26.60) | ||||
Break-even point in unit sales | 20,000 | ||||
Break-even point in dollar sales | Fixed expense/Contribution margin ratio | ||||
Break-even point in dollar sales | 228,000/30% | ||||
Break-even point in dollar sales | $760,000 | ||||
3 | |||||
Unit sales needed to attain target profit | (Fixed expense+Target profit)/Contribution margin per unit | ||||
Unit sales needed to attain target profit | (228000+114000)/(38-26.60) | ||||
Unit sales needed to attain target profit | 30,000 | ||||
Dollar sales needed to attain target profit | (Fixed expense+Target profit)/Contribution margin ratio | ||||
Dollar sales needed to attain target profit | (228000+114000)/30% | ||||
Dollar sales needed to attain target profit | $1,140,000 | ||||
4 | |||||
Revised variable expense per unit | 26.60-3.80 | ||||
Revised variable expense per unit | $22.80 | ||||
Contribution margin per unit | 38-22.8 | ||||
Contribution margin per unit | $15.20 | ||||
Contribution margin ratio | 15.2/38 | ||||
Contribution margin ratio | 40.00% | ||||
Break-even point in unit sales | Fixed expense/Contribution margin per unit | ||||
Break-even point in unit sales | 228,000/15.20 | ||||
Break-even point in unit sales | 15,000 | ||||
Break-even point in dollar sales | Fixed expense/Contribution margin ratio | ||||
Break-even point in dollar sales | 228,000/40% | ||||
Break-even point in dollar sales | $570,000 | ||||
Dollar sales needed to attain target profit | (Fixed expense+Target profit)/Contribution margin ratio | ||||
Dollar sales needed to attain target profit | (228000+114000)/30% | ||||
Dollar sales needed to attain target profit | $855,000 |
Lindon Company is the exclusive distributor for an automotive product that sells for $38.00 per unit...
Lindon Company is the exclusive distributor for an automotive product that sells for $38.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $228,000 per year. The company plans to sell 23,000 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...
Lindon Company is the exclusive distributor for an automotive product that sells for $38.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $228,000 per year. The company plans to sell 23,000 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...
Check my work Lindon Company is the exclusive distributor for an automotive product that sells for $38.00 per unit and has a CM ratio of 30% The company's fixed expenses are $228,000 per year. The company plans to sell 23.000 units this year. points 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...
Lindon Company is the exclusive distributor for an automotive product that sells for $50.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $345,000 per year. The company plans to sell 27,200 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...
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...
Lindon Company is the exclusive distributor for an automotive product that sells for $20.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $93,000 per year. The company plans to sell 16,700 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...
Lindon Company is the exclusive distributor for an automotive product that sells for $26.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $132,600 per year. The company plans to sell 18,800 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...
Lindon Company is the exclusive distributor for an automotive product that sells for $34.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $193,800 per year. The company plans to sell 21,600 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...
Lindon Company is the exclusive distributor for an automotive product that sells for $36.00 per unit and has a CM ratio of 30%. The company'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...
Lindon Company is the exclusive distributor for an automotive product that sells for $22.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $105,600 per year. The company plans to sell 17.400 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...