Help Save& Exit Submit Lindon Company is the exclusive distributor for an automo

Question

Help Save& Exit Submit Lindon Company is the exclusive distributor for an automotive product that sells for $42.00 per unit and has a CM expenses are $264600 per year The company plans to sell 24,400 units this year tebo ot 30%. The company's fired 1 What are the variable expenses per unt? 2. Whst is the break-even point in unit saies and in dollar sales? 3 What amount of unit sales and doilar sales is required to atain atarget proft of $138,600 per year? 4Asurre by using a more eficient shipper, the company sabe oreduce ts wide eperses by saoper unt. What h the compeny's new break even point in unit sales and in dolar sales? 5 6 9 0

Explanation / Answer

ans 1 Variable expenses per unit 29.40 Sales price-(sales price*CM ratio) 42-(42*30%) ans 2 Break even point in units 21000 Fixed cost/CM per unit 264600/(42-29.4) Break even point in $ 882000 Fixed cost/CM ratio 264600/30% ans 3 Unit sales 32000 Desired profit+fixed cost/CM (138600+264600)/(42-29.4 in $ 1344000 (138600+264600)/30% ans 4 New break even in units 31500 Fixed cost/CM per unit 264600/(42-29.4-4.2) Break even in $ 1323000 31500*42 Order sales are in $ in $ (48000*42) $2016000 working Order sales are in units Desired profit+fixed cost/CM 48000 (138600+264600)/(42-29.4-4.2)

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