Lindon Company is the exclusive distributor for an automotive product that sells for $22.00 per unit and has a CM ratio of 30%. The companys fixed expenses are $105,600 per year. The company plans to sell 17,400 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 $39,600 per year?

4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $2.20 per unit. What is the companys new break-even point in unit sales and in dollar sales?

1. Variable expense per unit 2. Break-even point in units 15.40 16,000 $ 352,000 Break-even point in dollar sales 3. Unit sales needed to attain target profit Dollar sales needed to attain target profit 4. New break-even point in unit sales New break-even point in dollar sales Doller sales needed to attain target profit