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Question 2 Lindon Company is the exclusive distributor for an automotive product. The product sells for $40 per unit and has a CM ratio of
Question 2 Lindon Company is the exclusive distributor for an automotive product. The product sells for $40 per unit and has a CM ratio of 30%. The company's fixed expenses are $240,000 per year. Required: 1. What are the variable expenses per unit? 2. What is the break-even point in units and sales dollars? 3. What sales level in units and in sales dollars is required to earn an annual profit of $80,000? 4. 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
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