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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