Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. lindon company is the exclusive distributor for an

Lindon Company is the exclusive distributor for an automotive product that sells for $48.00 per unit...

50.1K

Verified Solution

Question

Accounting

Lindon Company is the exclusive distributor for an automotiveproduct that sells for $48.00 per unit and has a CM ratio of 30%.The company’s fixed expenses are $324,000 per year. The companyplans to sell 26,500 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 dollarsales?

3. What amount of unit sales and dollar sales is required toattain a target profit of $180,000 per year?

4. Assume that by using a more efficient shipper, the company isable to reduce its variable expenses by $4.80 per unit. What is thecompany’s new break-even point in unit sales and in dollar sales?What dollar sales is required to attain a target profit of$180,000?

Answer & Explanation Solved by verified expert
4.1 Ratings (754 Votes)
1 Variable cost per unit Variable cost to sales ratio 100 30 a 70 Selling price per unit b 48 Variable cost per unit ab 3360 2 Breakeven point in unit sales Fixed cost a 324000 Contribution margin per unit 48 3360 b 1440    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

List the harmful effects caused by alcohol/drug abuse. Ans. Harmful effects caused by alcohol/drug abuse. Drug...

Biology
Q

1. If systemic vascular resistance increases, what happens to blood pressure and why? There are two ways. 2....

Medical Sciences
Q

Part A.) Phosgene (carbonyl chloride), COCl2, is an extremely toxic gas that is used in manufacturing...

Chemistry
Q

?nd the general solution of the given differential equation 1. 2y''+3y'+y=t^2 +3sint ?nd the solution of the...

Advance Math
Q

Which type of bond results in the transfer of valence shell electrons from one atom...

Biology
Q

in front of the centre of a mirror of width d hung vertically on a...

Physics
Q

If given just this information what would the government be able to calculate Geography Population...

Statistics
Q

5 What is the relationship between educational achievement and home ownership A random sample of...

Statistics
Q

x 9 9 Given f x 7 3x A Find lim x 818 B Find...

Calculus
Q

Graph f x 30 20 10 20 10 0 10 10 20

Algebra
Q

The Alpine House, Incorporated, is a large retailer of snow skis. The company assembled the...

Accounting
Q

Do companies use different depreciation methods for tax reporting and financial reporting? Why?

Accounting