question archive Lindon Company is the exclusive distributor for an automotive product that sells for $36

Lindon Company is the exclusive distributor for an automotive product that sells for $36

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Lindon Company is the exclusive distributor for an automotive product that sells for $36.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $210,600 per year. The company plans to sell 22,300 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 $102,600 per year?

4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.60 per unit. What is the company's new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $102,600?

what is the

  1. variable expense per unit
  2. breakeven point in units
  3. breakeven point in dollars
  4. unit sales needed to attain target profit
  5. dollar sales needed to attain target profit
  6. new break even point in unit sales
  7. new break even point in dollar sales
  8. dollar sales needed to attain target profit

 

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