Lindon Company is the exclusive distributor for an automotive product that sells for $40.00 per unit and has a CM ratio of 30%. The companys fixed expenses are $246,000 per year. The company plans to sell 23,700 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 $126,000 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $4.00 per unit. What is the companys new break-even point in unit sales and in dollar sales?

Lindon Company is the exclusive distributor for an automotive product that sells for $40.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $246,000 per year. The company plans to sell 23,700 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? What amount of unit sales and dollar sales is required to attain a target profit of $126,000 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $4.00 per unit. What is the company's new break-even point in unit sales and in dollar sales? 1. Variable expense per unit 2. Break-even point in units Break-even point in dollar sales 3. Unit sales needed to attain target profit Dollar sales needed to attain target profit 4.New break-even point in unit sales New break-even point in dollar sale Dollar sales needed to attain target profit