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Managerial Accounting (ACC-2220) Exercise 6-14 (Algo) Break-Even and Target Profit Analysis...

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Accounting

Managerial Accounting (ACC-2220)
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Exercise 6-14 (Algo) Break-Even and Target Profit Analysis [LO6-3, LO6-4, LO6-5, LO6-6] Lindon Company is the exclusive distributor for an automotive product that sells for $38.00 pet unit and has a CM ratio of 30%. The company's foxed expenses are $228,000 per year. The company plans to sell 23,000 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 $114,000 per year? 4. Assume that by using a more elficient shipper, the company is able to reduce its variable expenses by $3.80 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 $114,000

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