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Lindon Company is the exclusive distributor ' for an automotive product that sells for $40 per unit and has a CM ratio of 30%. The

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Lindon Company is the exclusive distributor ' for an automotive product that sells for $40 per unit and has a CM ratio of 30%. The company 5 xed expenses are $180,000 pe r year. The company plans to sell 16,000 units this year. Required: 1. What are the variable expenses per unit? 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 prot of $60,000 per year? 4. Assume that by using a more efcient shipper, the company is able to reduce its variable expenses by $4 per unit. What is the company's new breakeven point in unit sales and in dollar sales? What dollar sales is required to attain a target prot of $60,000? n Variable expense per unit a Break-even point in units - Break-even point in dollar sales I Dollar sales needed to attain target prot a New breakeven point in unit sales I New break-even point in dollar sales - Dollar sales needed to attain target prot

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