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Lindon Company is the exclusive distributor for an automotive product that sells for $38.00 per unit and has a CM ratio of 30%. The companys
Lindon Company is the exclusive distributor for an automotive product that sells for $38.00 per unit and has a CM ratio of 30%. The companys fixed expenses are $228,000 per year. The company plans to sell 23,000 units this year.
Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.80 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 $114,000?
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