Question

- Linden Company manufactures automotive parts that sell for $40 per unit and has a CM Ratio of 30%. Linden’s fixed costs are $180,000 per year. The company plans to sell 16,000 units this year.

**Required:**

- What is the variable cost per unit?
- What is the break-even point in unit sales AND in dollar sales?
- What amount of unit sales AND dollar sales is required to earn an annual profit of $60,000?
- Assume that by using a more efficient shipper, the company is able to reduce variable costs by $4 per unit. What is the company’s new break-even point in unit sales?

Answer #1

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?
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 $81,600...

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? 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...

Lindon Company is the exclusive distributor for an automotive
product that sells for $50.00 per unit and has a CM ratio of 30%.
The company’s fixed expenses are $345,000 per year. The company
plans to sell 27,200 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 $195,000...

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 $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? (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? (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 $30.00 per unit and has a CM ratio of 30%.
The company’s fixed expenses are $162,000 per year. The company
plans to sell 20,200 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 $34.00 per unit and has a CM ratio of 30%.
The company’s fixed expenses are $193,800 per year. The company
plans to sell 21,600 units this year.
4. Assume that by using a more efficient shipper, the company is
able to reduce its variable expenses by $3.40 per unit. What is the
company’s new break-even point in unit sales and in dollar sales?
What dollar sales is...

1.Lindon Company is the exclusive distributor for an automotive
product that sells for $30.00 per unit and has a CM ratio of 30%.
The company’s fixed expenses are $162,000 per year. The company
plans to sell 20,200 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? (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...

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