Lindon Company is the exclusive distributor for an automotive product that sells for $50.00 per unit and has a CM ratio of 30%. The companys fixed expenses are $345,000 per year. The company plans to sell 27,200 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 $195,000 per year?

4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $5.00 per unit. What is the companys new break-even point in unit sales and in dollar sales? What is the sales required to achieve the same target profit as requirement 3?

1.	Variable expense per unit	$(1,450.00)
2.	Break-even point in units	267,440
	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