XERCISE 5-16 Break-Even and Target Profit Analysis [LO3, LO4, LO5, LO6 Super Sales Company is the exclusive distributor for a revolutionary book bag. The product sells for S60 per unit and has a CM ratio of 40%. The company's fixed expenses are S360.000 per year The company plans to sell 17.000 bookbags this ycar Required 1. What are the variable expenses per unit? 2. Using lhe?uation method: a. What is the break-even point in units and in sales dollars b. What sales level in units and in sales dollars is required to earn an annual profit of $90,000? Assume that through negotiation with the manufacturer the Super Sales Company is able to reduce its variable expenses by S3 per unt. What is the company's new break-even point in units and in sales dollars? c. 3. Repeal (2) above using the formula method