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Exercise 5-14 (Algo) Break-Even and Target Profit Analysis (LO5-3, L05-4, LO5-5, LO5-6) Lindon Company is the exclusive distributor for an automotive product that sells for
Exercise 5-14 (Algo) Break-Even and Target Profit Analysis (LO5-3, L05-4, LO5-5, LO5-6) Lindon Company is the exclusive distributor for an automotive product that sells for $28.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $147,000 per year. The company plans to sell 19,500 units this year Required: 1. What are the varlable 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 $63,000 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $2.80 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 $63,000? nices 1 Variable expenso per unit 2 Break even point in units Break-even point in dollar sales 3 Unit salos needed to attain target profil Dollar salos needed to attain target profit 4 New break-even point in unif sales New break even point in dollar sales Dollar sales needed to attain target profit
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