Question:Linden Company manufactures automotive parts that sell for $40
per unit and has a CM Ratio...
Question
Linden Company manufactures automotive parts that sell for $40
per unit and has a CM Ratio...
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?