Super Sales Company is the exclusive distributor for a revolutionary bookbag. The product sells for $60 per
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Question:
Super Sales Company is the exclusive distributor for a revolutionary bookbag. The product sells for $60 per unit and has a CM ratio of 40%. The company's fixed expenses are $360,000 per year. The company plans to sell 17,000 bookbags this year.
Required:
- What are the variable expenses per unit?
- What is the break-even point in units and in sales dollars?
- What sales level in units and in sales dollars is required to earn an annual profit of $90,000?
- Assume that through negotiation with the manufacturer the Super Sales Company is able to reduce its variable expenses by $3 per unit. What is the company's new break-even point in units and in sales dollars?
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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