Lindon Company is the exclusive distributor for an automotive product selling for $40 per unit with a CM ratio of 30%. The company's fixed expenses are $180,000 per year and it plans to sell 16,000 units this year. Required: 1. What are the variable expenses per unit? 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 $60,000 per year? 4. Assume by using a more efficient shipper, the company can reduce its variable expenses by $4 per unit. What is the company's new break-even point in unit sales and dollar sales? What dollar sales are required to attain a target profit of $60,000? 1. Variable expense per unit 2. Break-even point in units 2. Break-even point in dollar sales 3. Unit sales needed to attain target profit 3. Dollar sales needed to attain target profit 4. New break-even point in unit sales 4. New break-even point in dollar sales 4. Dollar sales needed to attain target profit

Lindon Company is the exclusive distributor for an automotive product selling for $40 per unit with a CM ratio of 30%. The company's fixed expenses are $180,000 per year and it plans to sell 16,000 units this year. Required: 1. What are the variable expenses per unit? 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 $60,000 per year? 4. Assume by using a more efficient shipper, the company can reduce its variable expenses by $4 per unit. What is the company's new break-even point in unit sales and dollar sales? What dollar sales are required to attain a target profit of $60,000