Lindon Company is the exclusive distributor for an automotive product that sells for $30.00 per unit...

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Accounting

Lindon Company is the exclusive distributor for an automotiveproduct that sells for $30.00 per unit and has a CM ratio of 30%.The company’s fixed expenses are $162,000 per year. The companyplans to sell 20,200 units this year. Required:
1. What are the variable expenses per unit? (Round your "perunit" answer to 2 decimal places.)
2. What is the break-even point in unit sales and in dollarsales?
3. What amount of unit sales and dollar sales is required toattain a target profit of $72,000 per year?
4. Assume that by using a more efficient shipper, the company isable to reduce its variable expenses by $3.00 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$72,000?

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Answer 1 Contribution margin per unit Selling price per unit Contribution margin ratio Contribution margin per unit 30 30 Contribution margin per unit 9 Contribution margin per unit Selling price per unit Variable expenses per unit 9 30 Variable expenses per unit Variable expenses per unit 21 Answer 2 Breakeven point in unit sales Fixed expenses Contribution See Answer

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Lindon Company is the exclusive distributor for an automotiveproduct that sells for $30.00 per unit and has a CM ratio of 30%.The company’s fixed expenses are $162,000 per year. The companyplans to sell 20,200 units this year. Required:1. What are the variable expenses per unit? (Round your "perunit" answer to 2 decimal places.)2. What is the break-even point in unit sales and in dollarsales?3. What amount of unit sales and dollar sales is required toattain a target profit of $72,000 per year?4. Assume that by using a more efficient shipper, the company isable to reduce its variable expenses by $3.00 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$72,000?