What is the company new break-even point

Assignment Help Financial Accounting
Reference no: EM133131548

Question - Lindon Company is the exclusive distributor for an automotive product that sells for $28.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $147,000 per year The company plans to sell 19,500 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 $63,000 per year?

4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $2.80 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 $63,000?

Reference no: EM133131548

Questions Cloud

Determine a country development : What are the determining statistics to determine a country's development? How we can improve healthcare system by designing for developing countries?
Concept of macroeconomics : Based on the article, how would you define trade as it pertains to the concept of macroeconomics?
Perfectly competitive equilibrium price and quantity : The name of the business I am doing is Tech G fighters' company. The specific cost of starting your own business is that you will have what is called Expenses w
What is a good source to evaluate : What is a good source to evaluate and how do you judge its legitimacy? Need to find a good article in a scholarly journal and list some qualities concerning the
What is the company new break-even point : 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 $63,000
What is the average utilization of the machine : On average, there is a request for 10 screened shirts per hour. What is the average utilization of the machine?
Focusing on police-courts and corrections systems : Focusing on the police, courts, and corrections systems, what are most pressing managerial and administrative issues facing these groups?
Prepare the journal entry required on books of snow resorts : Prepare the journal entry required on the books of Snow Unlimited Resorts for the December 1, 2020 transaction
Reflect on your experience of interviewing the data : Reflect on your experience of interviewing and analysing the data. What did you do well, and what did you struggle with? What could you learn to do better

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd