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Lindon Company is the exclusive distributor for an automotive product that sells fo 50 per unit and has a CM atio of 20%. The company's

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Lindon Company is the exclusive distributor for an automotive product that sells fo 50 per unit and has a CM atio of 20%. The company's fixed expenses are $108,000 per year. The company plans to sell 13,000 units this year Required: 1. What are the variable expenses per unit? 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 b. What amount of unit sales and dollar sales is required to earn an annual profit of $75,000? Sales level in Sales level in dollars c. Assume that by using a more efficlent shipper, the company is able to reduce its variable expenses by $5 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 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 ean an annual profit of $75,000? Sales level in units Sales level in dollars

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