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Lindon Company is the exclusive distributor for an automotive product that sells for $30 per unit and has a CM ratio of 40%. The company's
Lindon Company is the exclusive distributor for an automotive product that sells for $30 per unit and has a CM ratio of 40%. The company's fixed expenses are $128,400 per year. The company plans to sell 14,000 units this year. Required: 1. What are the variable expenses per unit? Variable expenses per unit 2. Use the equation method: a. What is the break-even point in unit sales and in dollar sales? Break-even point in unit sales Break-even point in dollar sales Break-even point in unit sales Break-even point in dollar sales b. What amount of unit sales and dollar sales is required to earn an annual profit of $66,000? Sales level in units Sales level in dollars c. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3 per unit. Wha the company's new break-even point in unit sales and in dollar sales? New break-even point in unit sales New break-even point in dollar sales 3. Repeat (2) above using the formula method. 3. Repeat (2) above using the formula method. a. What is the break-even point in unit sales and in dollar sales? Break-even point in unit sales Break-even point in dollar sales b. What amount of unit sales and dollar sales is required to earn an annual profit of $66,000? Sales level in units Sales level in dollars Check my wom c. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3 per unit. What is the company's new break-even point in unit sales and in dollar sales? New break-even point in unit sales New break-even point in dollar sales
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