What are the variable expenses per unit

Assignment Help Auditing

Reference no: EM131902191

Problem

Lindon Company is the exclusive distributor for an automotive product that sells for $47.00 per unit and has a CM ratio of 34%. The company's fixed expenses $207,740 per year. The company plans to sell 14,000 units this year.

Required:

1. What are the variable expenses per unit?

2. Use the equation method:

a. What is the break-even point in unit sales and in dollar sales?

b. What amount of unit sales and dollar sales is required to earn an annual profit of $79?

Reference no: EM131902191

Questions Cloud

Prepare a balance sheet for crown-well inc : Prepare a balance Sheet for Crown-well Inc. as at period ending 2012.Compute the firm's free cash flows for 2012.

Prepare the journal entry to record item one : Prepare the journal entry to record item 1. Prepare the journal entry to record item 2. Prepare the journal entry to record item 3 using the cost method.

How does genzymes focus on orphan drugs affect the degree : How does Genzyme's focus on orphan drugs affect the degree of competition it faces? How does it affect the bargaining power of customers?

What is the npv of agreeing to write the book : Former president Bill Clinton reportedly was paid an advance of $15 million to write his book My Life. Suppose the book took three years to write.

What are the variable expenses per unit : What are the variable expenses per unit? What amount of unit sales and dollar sales is required to earn an annual profit of $79?

Compute the assets turnover and return on equity : You may need to search for number of Outstanding Shares as these may not be available on Income Statements or Balance Sheets.

What rate should the shop report : How much do you have to save each month if you can earn an annual return of 12 percent?

Calculate lindstroms margin of safety and margin of safety : Lindstrom Company produces two fountain pen. Calculate Lindstrom's margin of safety and margin of safety as a percentage of sales if it sells 8,000 total pens.

Write a report identifying the main strategic issues : We're in the business of satisfying thirst. We do it very well. Write a report identifying the main strategic issues associated with Lion's China operation.

User Account

All Pages