Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit and has a CM ratio of 30%. The companys fixed expenses are $180,000 per year. The company 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 that by using a more efficient shipper, the company is able to reduce its variable expenses by $4 per unit. What is the companys new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $60,000?