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Lindon Company is the exclusive distributor for an automotive product that sells for $54.00 per unit and has a CM ratio of 30% The
Lindon Company is the exclusive distributor for an automotive product that sells for $54.00 per unit and has a CM ratio of 30% The company's fixed expenses are $388,800 per year. The company plans to sell 28,600 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 $226,800 per year! 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $5.40 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 $226,800? 1 Variable expense per unit 2 Break-even point in units Break-even point in dollar sales 3 Unit sales needed to attain target profe Dollar sales needed to attain target profit 4. Now break-even point in unit sales New break-even point in dollar sales Dollar sales needed to attain target profit 37.80 24,000 $ 1.296,000 38.000 $ 2.052.000 18,000 S 972,000 Prev 4 of 6 Next >
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