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Lindon Company is the exclusive distributor for an automotive product that sells for $48.00 per unit and has a CM ratio of 30%. The companys

Lindon Company is the exclusive distributor for an automotive product that sells for $48.00 per unit and has a CM ratio of 30%.

The companys fixed expenses are $324,000 per year. The company plans to sell 26,500 units this year.

Required:

1. What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places.)

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 $180,000 per year?

4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $4.80 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 $180,000?

1.Variable expense per unit

2.Break-even point in units

-Break-even point in dollar sales

3. Unit sales needed to attain target profitDollar sales needed to attain target profit

4. New break-even point in unit salesNew break-even point in dollar salesDollar sales needed to attain target profit

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