Lindon Company is the exclusive distributor for an automotive product that sells for $42.00 per unit and has a CM ratio
Posted: Sun Jun 05, 2022 5:21 pm
Lindon Company is the exclusive distributor for an automotive
product that sells for $42.00 per unit and has a CM ratio of 30%.
The company’s fixed expenses are $264,600 per year. The company
plans to sell 24,400 units this year.
4. Assume that by using a more efficient shipper, the company is
able to reduce its variable expenses by $4.20 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
$138,600?
product that sells for $42.00 per unit and has a CM ratio of 30%.
The company’s fixed expenses are $264,600 per year. The company
plans to sell 24,400 units this year.
4. Assume that by using a more efficient shipper, the company is
able to reduce its variable expenses by $4.20 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
$138,600?