Lindon Company is the exclusive distributor for an automotiveproduct that sells for $50.00 per unit and has a CM ratio of 30%.The company’s fixed expenses are $345,000 per year. The companyplans to sell 27,200 units this year. Required: 1. What are thevariable expenses per unit? (Round your "per unit" answer to 2decimal places.) 2. What is the break-even point in unit sales andin dollar sales? 3. What amount of unit sales and dollar sales isrequired to attain a target profit of $195,000 per year? 4. Assumethat by using a more efficient shipper, the company is able toreduce its variable expenses by $5.00 per unit. What is thecompany’s new break-even point in unit sales and in dollar sales?What dollar sales is required to attain a target profit of$195,000?
