Lindon Company is the exclusive distributor for an automotive product that sells for $46.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $303,600 per year. The company plans to sell 25,800 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 $165,600 per year?
4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $4.60 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 $165,600?
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 sales
Dollar sales needed to attain target profit