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Lindon Company is the exclusive distributor for an automotive product that sells for $50.00 per unit and has a CM ratio of 30%. The company's

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Lindon Company is the exclusive distributor for an automotive product that sells for $50.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $345,000 per year. The company plans to sell 27,200 units this year. Required: 1. What are the variable expenses per unit? (Round your "per unit'I 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 $195,000 per year? 4. Assume that by using a more efcient shipper, the company is able to reduce its variable expenses by $5.00 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 $195,000? 1. Variable expense per unit $ 35.00 2. Break-even point in units 23,000 2. Break-even point in dollar sales $ 1,150,000 3. Unit sales needed to attain target prot 35,000 3. Dollar sales needed to attain target prot $ 1,800,000 4. New break-even point in unit sales 27,000 4. New break-even point in dollar sales $ 862,500 4. Dollar sales needed to attain target prot $ 1,350,000

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