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Lindon Company is the exclusive distributor for an automotive product that sells for $40 per...

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Accounting

Lindon Company is the exclusive distributor for an automotive product that sells for $40 per 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.
1 What are the variable expenses per unit?
2 What is the break even point in unit sales and in dollar sales?
3 What amount of unit sales and dollar sales is required to attain a target profit of $60,000 per year?
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 unit sales and in sales dollars?
What dollar sales is required to attain a target profit of $60,000?
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