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Connect Saved Help Saw Exercise 5-14 Break-Even and Target Profit Analysis [LO5-3, LO5-4, LO5-5, LO5-6] Lindon Company is the exclusive distributor for an automotive product
Connect Saved Help Saw Exercise 5-14 Break-Even and Target Profit Analysis [LO5-3, LO5-4, LO5-5, LO5-6] Lindon Company is the exclusive distributor for an automotive product that sells for $42.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $264,600 per year. The company plans to sell 24,400 units this year Required: 1. What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places.) 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 $138,600 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $4.20 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 5138,6007 ok 1 Variable expense per unit 2 Break-even point in units Break-even point in dollar sales 3. Unit sales needed to attain target profia Dollar sales needed to attain target profit 4 New break-even point in unit sales break-even point in dollar sales Daliar sales needed to attain target profit
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