Chapter 11 EXERCISE 1-2 Break-Even and Target Profit Analysis (CC1,8,9) Lindon Company is the exclusive distributor for an automotive product. The product sells for $40 per unit and has a CM ratio of 30%. The company's fixed expenses are $240,000 per year. Required: I. What are the variable expenses per unit? 2. Using the equation method: La What is the break-even point in units and sales dollars? What calae lavallini Please calculate Debt to Equity Ratio Cash Retained Earnings Common Stock Accounts Payable Short term Investment A/R Inventories Prepaid Exp Accured Expenses Long-term Investment Land Other Operationg Equipment Building Furniture and Equipment Less: Accumulated Depreciation Owner's capital-extra Accrued Income Taxes (Current) Current Portion of Long-term debt Mortgage Payable Deferred Income Taxes (Long-term) 2000 20,000 235,000 55,000 60,000 60,000 100,000 14,000 13,000 70,000 43,000 68,500 11,500 810,000 170,000 260,000 110,000 30,000 25,000 425,000 40,000 2001 21,000 255,000 55,000 53,500 81,000 90,000 17,000 12,000 85,200 35,000 68,500 20,500 850,000 190,000 320,000 110,000 32,000 21,500 410,000 42,800 Select one: O A. 2000: 1.63 2001: 1.54 OB. 2000: 1.21 2001: 1.21 OC. 2000: 1.63 2001: 1.68 OD. 2000: 1.48 2001: 1.60