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...


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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<br>company's fixed expenses are $366,600 per year. The company plans to sell 27,900 units this year.<br>Required:<br>1. What are the variable expenses per unit? (Round your

Extracted text: 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 $210,600? X Answer is complete but not entirely correct. 1. Variable expense per unit 2$ 36.40 2. Break-even point in units 10,071 X Break-even point in dollar sales $ 523,692 X 3. Unit sales needed to attain target profit 15,857 X Dollar sales needed to attain target profit 824,564 X 4. New break-even point in unit sales 17,625 New break-even point in dollar sales 24 916,500 Dollar sales needed to attain target profit $ 1,443,000

Jun 08, 2022
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