per EXERCISE 6-13 Target Profit and Break-Even Analysis [L03, L04, LOS, LOG] Lindon Company is the exclusive distributor for an automotive product that sells for $40 unit and has a CM ratio of 30%. The company's fixed expenses are $180,000 per year. The company plans to sell 16,000 units this year. Required: What are the variable expenses per unit? 1 2. Using the equation method: What is the break-even point in units and sales dollars? b 3. What sales level in units and in sales dollars is required to earn an annual profit of $60,000? Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $4 per unit. What is the company's new break-even point in units and sales dollars? Repeat (2) above using the formula method.