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Lindon Company is the exclusive distributor for an automotive product that sells for $32.00 per...

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Accounting

Lindon Company is the exclusive distributor for an automotive product that sells for $32.00 per unit and has a CM ratio of 30%. The companys fixed expenses are $177,600 per year. The company plans to sell 20,900 units this year.

Required: 1. What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places.)

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 $81,600 per year?

4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.20 per unit. What is the companys new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $81,600?

1.Variable expense per unit 2.Break-even points in units 2.Break-even point in dollar sales 3.Unit sales needed to attain target profit 3.Dollar sales needed to attain target profit 4. New break-even point in unit sales 4.New break-even point in dollar sales 4.Dollar sales needed to attain target profit

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