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.

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 $114,000 per year?

4. 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?

\begin{tabular}{|l|l|} \hline 1. Variable expense per unit & \\ \hline 2. Break-even point in units & \\ \hline 2. Break-even point in dollar sales & \\ \hline 3. Unit sales needed to attain target profit & \\ \hline 3. Dollar sales needed to attain target profit & \\ \hline 4. New break-even point in unit sales & \\ \hline 4. New break-even point in dollar sales \\ \hline 4. Dollar sales needed to attain target profit \\ \hline \end{tabular}