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Lindon Company is the exclusive distributor for an automotive product selling for $36.00 per unit with a CM ratio of 30%. The company's fixed expenses
Lindon Company is the exclusive distributor for an automotive product selling for $36.00 per unit with a CM ratio of 30%. The company's fixed expenses are $210,600 per year and it plans to sell 22,300 units this year. Required: 1. What are the variable expenses per unit? Note: 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 $102,600 per year? 4. Assume by using a more efficient shipper, the company can reduce its variable expenses by $3.60 per unit. What is the company new break-even point in unit sales and dollar sales? What dollar sales are required to attain a target profit of $102,600
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