Lindon Company is the exclusive distributor for an automotive product that sells for $10.50 per unit and has a CM ratio of 30%. The companys fixed expenses are $49,140 per year. The company plans to sell 15,200 units this year.

a. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $1.05 per unit. What is the companys new break-even point in unit sales and in dollar sales?

b. Repeat above using the formula method. What is the break-even point in unit sales and in dollar sales?

c.What amount of unit sales and dollar sales is required to earn an annual profit of $15,750?

d. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $1.05 per unit. What is the companys new break-even point in unit sales and in dollar sales?