In: Accounting

Lindon Company is the exclusive distributor for an automotive product that sells for $24.00 per unit and has a CM ratio of 30%. The company’s fixed expenses are $118,800 per year. The company plans to sell 18,100 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 $46,800 per year?

4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $2.40 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 $46,800?

Lindon Company is the exclusive distributor for an automotive
product that sells for $56.00 per unit and has a CM ratio of 30%.
The company’s fixed expenses are $411,600 per year. The company
plans to sell 29,300 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...

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 company’s 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...

Lindon Company is the
exclusive distributor for an automotive product that sells for
$54.00 per unit and has a CM ratio of 30%. The company’s fixed
expenses are $388,800 per year. The company plans to sell 28,600
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
$226,800...

Lindon Company is the exclusive distributor for an automotive
product that sells for $22.00 per unit and has a CM ratio of 30%.
The company’s fixed expenses are $105,600 per year. The company
plans to sell 17,400 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...

Lindon Company is the exclusive distributor for an automotive
product that sells for $54.00 per unit and has a CM ratio of 30%.
The company’s fixed expenses are $388,800 per year. The company
plans to sell 28,600 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 $226,800...

Lindon Company is the exclusive distributor for an automotive
product that sells for $28.00 per unit and has a CM ratio of 30%.
The company’s fixed expenses are $147,000 per year. The company
plans to sell 19,500 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 dollar
sales?
3. What amount of unit sales and dollar sales...

Lindon Company is the exclusive distributor for an automotive
product that sells for $38.00 per unit and has a CM ratio of 30%.
The company’s fixed 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...

Lindon Company is the exclusive distributor for an automotive
product that sells for $32.00 per unit and has a CM ratio of 30%.
The company’s fixed expenses are $177,600 per year. The company
plans to sell 20,900 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...

Lindon Company is the exclusive distributor for an automotive
product that sells for $44.00 per unit and has a CM ratio of 30%.
The company’s fixed expenses are $283,800 per year. The company
plans to sell 25,100 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...

Lindon Company is the exclusive distributor for an automotive
product that sells for $45 per unit and has a CM ratio of 20%. The
company’s fixed expenses are $108,000 per year. The company plans
to sell 14,000 units this year.
Required: 1. What are the variable expenses per unit?
2. Use the equation method:
a. What is the break-even point in unit sales and in dollar
sales?
b. What amount of unit sales and dollar sales is required to
earn...

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