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Q.5) Lindon Company is the exclusive distributor for an automotive product that sells for $40 $180,000 Required: 1. What are the variable expenses per unit?

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Q.5) Lindon Company is the exclusive distributor for an automotive product that sells for $40 $180,000 Required: 1. What are the variable expenses per unit? 2. Using the equation method: a. What is the break-even point in units and sales dollars? b. What sales level in units and in sales dollars is required to earn an annual profit of $60,000? c. 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 per unit and has a CM ratio of 30%. The company's fixed expenses are per year. The company plans to sell 16,000 units this year. units and sales dollars? 3. Repeat (2) above using the formula method

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