90.2K

Verified Solution

Link Copied!

please answer this while showing work and maybe explaining please

please answer this showing work

Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit and has a CM ratio of 30%. The company's fixed expenses are $180,000 per year. The company plans to sell 16,000 units this year. Answer the following questions (Show your work): 1. What are the variable expenses per unit? 2. What is the break-even point in units? 3. What amount of dollar sales is required to earn an annual profit of $60,000 ? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $4 per unit. What is the company's new break-even point in units? 5. Based on the BE point calculated in question \#2 and the planned sales given in the information at the top of the page, what is the company's margin of safety in dollars? Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit and has a CM ratio of 30%. The company's fixed expenses are $180,000 per year. The company plans to sell 16,000 units this year. Answer the following questions (Show your work): 1. What are the variable expenses per unit? 2. What is the break-even point in units? 3. What amount of dollar sales is required to earn an annual profit of $60,000 ? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $4 per unit. What is the company's new break-even point in units? 5. Based on the BE point calculated in question \#2 and the planned sales given in the information at the top of the page, what is the company's margin of safety in dollars? Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit and has a CM ratio of 30%. The company's fixed expenses are $180,000 per year. The company plans to sell 16,000 units this year. Answer the following questions (Show vour work): 1. What are the variable expenses per unit? 3. What amount of dollar sales is required to earn an annual profit of $60,000 ? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $4 per unit. What is the company's new break-even point in units? 5. Based on the BE point calculated in question \#2 and the planned sales given in the information at the top of the page, what is the company's margin of safety in dollars

Answer & Explanation Solved by verified expert

See Answer