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 $36.00 per...

70.2K

Verified Solution

Question

Accounting

Lindon Company is the exclusive distributor for an automotive product that sells for $36.00 per unit and has a CM ratio of 30%. The companys fixed expenses are $210,600 per year. The company plans to sell 22,300 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 $102,600 per year?

4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.60 per unit. What is the companys new break-even point in unit sales and in dollar sales?

Answer & Explanation Solved by verified expert
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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

When becoming a certified peer recovery specialist why is it important to mentor and educate on...

Psychology
Q

How does one’s personal ethics intersect with one’s professional ethics? Can these be in harmony, or...

Psychology
Q

Choctaw Co. completed the following transactions in Year 1, the first year of operation. Issued 27,000 shares...

Accounting
Q

3 Start rotating around earth in a circular orbit 4 Escape from gravitational field of...

Physics
Q

A population numbers 15,000 organisms initially and grows by 4.8% each year. Suppose P represents...

Basic Math
Q

In a random sample of 25 people, the mean commute time to work was 32.6...

Basic Math
Q

following graph and the hole for this graph is 6 9 4 points Find the...

Algebra
Q

If a company had $15,000 of over-applied overhead, select...

Accounting
Q

which of the following should be deducted from the net income in calculating net cash...

Accounting
Q

The trial balances before and after adiustment for Sandhill Comnanv at the end nf its...

Accounting
Q

What are the fundamental differences between a traditional costing system and an activity - based...

Accounting
Q

Problem 6-20 CVP Applications: Break-Even Analysis; Cost Structure; Target Sales (LO6-1, LO6-3, LO6- 4, LO6-5,...

Accounting