indon Company is the exclusive distributor for an automotive product that sells for $5000 per...
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Accounting
indon Company is the exclusive distributor for an automotive product that sells for $5000 per unit and has a CM ratio of 30% The ompany'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? 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 $195,000 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $5.00 per unit. What is the company's new break-even point in unit sales and in dollar sales? 1. Variable expense per unit 2. Break-even point in units 35.00 23,000 S 1.150,000 36,000 S 1,345,000 Break-even point in dollar sales 3. Unit sales needed to attain target profit Dollar sales needed to attain target profit 4. New break-even point in unit sales New break-even point in dollar sales Dollar sales needed to attain target profit

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