Business, 17.03.2020 23:23 jalst6084

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.

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 $60,000 per year? 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 unit sales and in dollar sales? What dollar sales is required to attain a target profit of $60,000?

Answers: 3

Show answers

Answers

Answer from: diamond8189

Part 1 Break-even point in unit sales and in dollar sales

Break-even point in unit sales = 15,000

Break-even point in dollar sales = $ 600,000

Part 2 What amount of unit sales and dollar sales is required to attain a target profit of $60,000 per year

unit sales required to attain a target profit = 20,000

dollar sales required to attain a target profit = $ 800,000

Part 3 (A) The company is able to reduce its variable expenses by $4 per unit. What is the company’s new break-even point in unit sales and in dollar sales

Break-even point in unit sales = 11,250

Break-even point in dollar sales= $450,000

Part 3 (B) the company is able to reduce its variable expenses by $4 per unit. What dollar sales is required to attain a target profit of $60,000

unit sales required to attain a target profit = 15,000

dollar sales required to attain a target profit = $ 600,000

Explanation:

Part 1 Break-even point in unit sales and in dollar sales

Break-even point in unit sales = Fixed Costs/ Contribution per unit

= $180,000 / $40× 30%

= 15,000

Break-even point in dollar sales = Fixed Costs / Contribution Margin Ratio

= $180,000/0.30

= $ 600,000

Part 2 What amount of unit sales and dollar sales is required to attain a target profit of $60,000 per year

unit sales required to attain a target profit = (Fixed Costs + Target Profit)/Contribution per unit

=($180,000+$60,000)/($40× 30%)

= 20,000

dollar sales required to attain a target profit = unit sales required to attain a target profit × Selling Price per Unit

= 20,000 × $40.00

= $ 800,000

Part 3 (A) The company is able to reduce its variable expenses by $4 per unit. What is the company’s new break-even point in unit sales and in dollar sales

Break-even point in unit sales = Fixed Costs/ Contribution per unit

= $180,000 / ($40-(($40× 70%) - $4))

= $180,000/ $16

= 11,250

Break-even point in dollar sales = Fixed Costs / Contribution Margin Ratio

= $180,000/ ($16/$40)

= $180,000/ 0.40

= $450,000

Part 3 (B) the company is able to reduce its variable expenses by $4 per unit. What dollar sales is required to attain a target profit of $60,000

unit sales required to attain a target profit = (Fixed Costs + Target Profit)/Contribution per unit

=($180,000+$60,000)/$16

= 15,000

dollar sales required to attain a target profit = unit sales required to attain a target profit × Selling Price per Unit

= 15,000 × $40.00

= $ 600,000

Answer from: Quest

By doing scientific studies

Answer from: Quest

answer///(d)individual rights of a person are integral to analyzing the morality of action;

Another question on Business

Business, 22.06.2019 11:20

In 2000, campbell soup company launched an ad campaign that showed prepubescent boys offering soup to prepubescent girls. the girls declined because they were concerned about their calorie intake. the boys explained that “lots of campbell’s soups are low in calories,” which made them ok for the girls to eat. the ads were pulled after parents expressed concern. why were parents worried? i

Answers: 2

Answer

Business, 22.06.2019 18:30

Jason started last week with $900 in his checking account. during the week, he wrote the checks below. at the end of the week, jason received a paycheck for $534.59. he recorded all of these transactions in his check register. trans typ./ check no. date description of transaction payment/ debit deposit/ credit (+) balance 900 00 241 12/4 miller's food market 53.21 53 21 groceries 846 79 242 12/7 frank's auto parts 24.05 24 05 oil and filter 822 74 243 12/8 mike's barber shop 15.00 15 00 haircut 807 74 deposit 12/9 paycheck 534.59 534 59 1,342 33 evaluate jason's check register. a. jason did a good job; everything is correct. b. the final balance is wrong; jason did not add everything correctly. c. jason should have written debit instead of deposit for the transaction type. d. jason entered the amount for his paycheck in the wrong column.

Answers: 3

Answer

Business, 22.06.2019 19:40

Lauer corporation uses the periodic inventory system and has provided the following information about one of its laptop computers: date transaction number of units cost per unit 1/1 beginning inventory 210 $ 910 5/5 purchase 310 $ 1,010 8/10 purchase 410 $ 1,110 10/15 purchase 255 $ 1,160 during the year, lauer sold 1,025 laptop computers. what was cost of goods sold using the lifo cost flow assumption?

Answers: 1

Answer

Business, 22.06.2019 20:20

Tl & co. is following a related-linked diversification strategy, and soar inc. is following a related-constrained diversification strategy. how do the two firms differ from each other? a. soar inc. generates 70 percent of its revenues from its primary business, while tl & co. generates only 10 percent of its revenues from its primary business. b. soar inc. pursues a backward diversification strategy, while tl & co. pursues a forward diversification strategy. c. tl & co. will share fewer common competencies and resources between its various businesses when compared to soar inc. d. tl & co. pursues a differentiation strategy, and soar inc. pursues a cost-leadership strategy, to gain a competitive advantage.

Answers: 3

Answer

You know the right answer?

Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit an...

Questions