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Lindon Company is the exclusive distributor for an automotive product that sells for $44.00 per unit and has a CM ratio of company's fixed expenses
Lindon Company is the exclusive distributor for an automotive product that sells for $44.00 per unit and has a CM ratio of company's fixed expenses are $283,800 per year. The company plans to sell 25,100 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 $151,800 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $4.40 per unit. What is the company's new break-even point in unit sales and in dollar sales? . Variable expense per unit 2. Break-even point in units 3. Unit sales needed to attain target profit 4. New break-even point in unit sales Break-even point in dollar sales Dollar sales needed to attain target profit New break-even point in dollar sales Doller sales needed to attain target profit
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