LB Company sells for $40 per unit and has a CM ratio of 30%. The companys fixed expenses are $180,000 per year. The company plans to sell 16,000 units this year. (1 mark) -

(a) The break-even point is _________ units 15000 unanswered 15000 (2 mark) -

(b) The amount of dollar sales required to earn an annual profit of $60,000 is $ 800000 unanswered 800000 (2 marks) -

(c) If selling price remains unchanged and variable expenses are reduced by $4, the new break-even point in dollar sales will be $ unanswered (2 marks) -

(d) What will be the impact of a reduction of CM ratio on break-even point and why?