c. | Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.90 per unit. What is the companys new break-even point in unit sales and in dollar sales? (Do not round intermediate calculations. Round up break even point answers to the nearest whole number.) 3. | Repeat (2) above using the formula method. | a. | What is the break-even point in unit sales and in dollar sales? (Do not round intermediate calculations.) b. | What amount of unit sales and dollar sales is required to earn an annual profit of $85,500? (Do not round intermediate calculations.) c. | Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.90 per unit. What is the companys new break-even point in unit sales and in dollar sales? (Do not round intermediate calculations. Round up break even point answers to the nearest whole number.) | | | |
3 2.85 points value: Lindon Company is the exclusive distributor for an automotive product that sells for $45.00 per unit and has a CM ratio of 38%. The company's fixed expenses are $495,900 per year. The company plans to sell 30,000 units this year. Required 1. What are the variable expenses per unit? (Round your answer to 2 decimal places.) ariable expenses 27.90 per unit 2. Use the equation method: a. What is the break-even point in unit sales and in dollar sales? (Do not round intermediate calculations.) 29,000 Break-even point in unit sales Break-even point in dollar sales $ 513,000 b. What amount of unit sales and dollar sales is required to earn an annual profit of $85,500? (Do not round intermediate calculations.) Sales level in units Sales level in dollars