Business, 17.03.2020 04:37 alissa64

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 $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: 1

Show answers

Answers

Answer from: kenyardrgz15

Missing part of Question

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

1. Variable Expenses per Unit = $28

2. Units Sales = 15,000; Dollar Sales = $600,000

3. Unit Sales = 20,000; Dollar Sales = $800,000 units

4. Unit Sales = 11,250 units

Dollar Sales = $450,000

Explanation:

1. The Variable Expenses per unit

This is calculated as follows;

$40 * (100% - 30%)

= $40 *70%

= $28

2. Break-even point in unit sales and in dollar sales is calculated as follows;

For unit sales;

Using the following formula

Profit = Unit CM * Q - Fixed Expenses

Where Profit = $0

Unit CM = $40 - $28 = $12

Q = Unit Sales

Fixed Expenses = $180,000.

So, we have

$0 = $12 * Q - $180,000

$12Q = $180,000

Q = $180,000/$12

Q = 15,000 units

For Dollar sales

Dollar Sales = 15,000 units * $40 per unit

Dollar Sales = $600,000

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

Here Profit = $60,000

Using

Profit = Unit CM * Q - Fixed Expenses

We have

$60,000 = $12Q - $180,000

$12Q = ,$180,000 + $60,000

$12Q = $240,000

Q = $240,000/$12

Q = 20,000 units

Dollar Sales = 20,000 units * $40 per units

Dollar Sales = $800,000 units

Using Profit = Unit CM * Q - Fixed Expenses

Here,

Profit = $0

Unit CM = $40 - $28 + $4 = $16

Fixed Expenses = $180,000

So, we have

$0 = $16Q - $180,000

$16Q = $180,000

Q = $180,000/$16

Q = 11,250 units

Dollar sales. = 11,250 units * $40 per unit

Dollar Sales = $450,000

Answer from: Quest

answer; hazards;

Answer from: Quest

i believe the answer is: streets and roads

public property refers to the property that can be used by all legal citizens in a certain country. the public property was created and maintain using the government budget that allocated specifically for it. the budget itself come from the citizen's income tax payment.

Another question on Business

Business, 22.06.2019 01:00

The penalties for a first-time dui charge include revocation of drivers license a. 180 days b. ben 180 des and one year c. bence 90 and 180 d. one year

Answers: 2

Answer

Business, 22.06.2019 05:00

Xie company identified the following activities, costs, and activity drivers for 2017. the company manufactures two types of go-karts: deluxe and basic. activity expected costs expected activity handling materials $ 625,000 100,000 parts inspecting product 900,000 1,500 batches processing purchase orders 105,000 700 orders paying suppliers 175,000 500 invoices insuring the factory 300,000 40,000 square feet designing packaging 75,000 2 models required: 1. compute a single plantwide overhead rate, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours. 2. in january 2017, the deluxe model required 2,500 direct labor hours and the basic model required 6,000 direct labor hours. assign overhead costs to each model using the single plantwide overhead rate.

Answers: 3

Answer

Business, 22.06.2019 12:00

Areal estate agent is considering changing her cell phone plan. there are three plans to choose from, all of which involve a monthly service charge of $20. plan a has a cost of $.42 a minute for daytime calls and $.17 a minute for evening calls. plan b has a charge of $.52 a minute for daytime calls and $.15 a minute for evening calls. plan c has a flat rate of $80 with 275 minutes of calls allowed per month and a charge of $.38 per minute beyond that, day or evening.a. determine the total charge under each plan for this case: 150 minutes of day calls and 70 minutes of evening calls in a month. (do not round intermediate calculations. round your answer to 2 decimal places. omit the "$" sign in your response.)c. if the agent will use the service for daytime calls, over what range of call minutes will each plan be optimal? (round each answer to the nearest whole number.include the indifference point itself in each answer.)d. suppose that the agent expects both daytime and evening calls. at what point (i.e., percentage of total call minutes used for daytime calls) would she be indifferent between plans a and b?

Answers: 1

Answer

Business, 22.06.2019 20:10

Russell's is considering purchasing $697,400 of equipment for a four-year project. the equipment falls in the five-year macrs class with annual percentages of .2, .32, .192, .1152, .1152, and .0576 for years 1 to 6, respectively. at the end of the project the equipment can be sold for an estimated $135,000. the required return is 13.2 percent and the tax rate is 23 percent. what is the amount of the aftertax salvage value of the equipment assuming no bonus depreciation is taken

Answers: 2

Answer

You know the right answer?

1. What are the variable expenses per unit? 2. What is the break-even point in unit sales and in dol...

Questions