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Lindon Company is the exclusive distributor for an automotive product that sells for $52.00 per unit and has a CM ratio of 30%. The company's
Lindon Company is the exclusive distributor for an automotive product that sells for $52.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $366,600 per year. The company plans to sell 27,900 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 $210,600 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $5.20 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 $210,600? Answer is not complete 36.40 Variable expense per unit 1 23,500 2 Break-even point in units Break-even point in dollar sales $1,222,000 37,000 Unit sales needed to attain target profit $ 1,924,000 Dollar sales needed to attain target profit New break-even point in unit sales 8,813(X 4 New bre point in dollar sal Dollar sales needed to attain target profit
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