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Lindon Company is the exclusive distributor for an automotive product that sells for $36.00 per...

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Accounting

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 companys 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?

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 companys new break-even point in unit sales and in dollar sales?

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