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Lindon Company is the exclusive distributor for an automotive product that sells for $60 per unit and has a CM ratio of 20%. The company's fixed expenses are $162,000 per year. The company plans to sell 15,000 units this year. Required: 1. What are the variable expenses per unit? Variable expenses $ 48 per unit 2. Use the equation method: a. What is the break-even point in unit sales and in dollar sales? Break-even point in unit sales Break-even point in dollar sales 13,500 $ 810,000 b. What amount of unit sales and dollar sales is required to eam an annual profit of $72,000? Sales level in units Sales level in dollars c. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $6 per unit. What is the company's new break-even point in unit sales and in dollar sales? New break-even point in unit sales New break-even point in dollar sales 3. Repeat (2) above using the formula method. a. What is the break-even point in unit sales and in dollar sales? Break-even point in unit sales Break-even point in dollar sales b. What amount of unit sales and dollar sales is required to earn an annual profit of $72,000? Sales level in units Sales level in dollars c. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $6 per unit. What is the company's new break-even point in unit sales and in dollar sales? New break-even point in unit sales New break-even point in dollar sales

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