Lindon Company is the exclusive distributor for an automotive product that sells for $52.00 per unit and has a CM ratio of 30%. The company’s fixed expenses are $366,600 per year. The company plans to sell 27,900 units this year.

Required:

What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places.)

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 $210,600 per year?

Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $5.20 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 $210,600?

 

Transcribed Image Text:

1. Variable expense per unit 2. Break-even point in units 2. Break-even point in dollar sales 3. Unit sales needed to attain target profit 3. Dollar sales needed to attain target profit 4. New break-even point in unit sales 4. New break-even point in dollar sales 4. Dollar sales needed to attain target profit 1. Variable expense per unit 2. Break-even point in units 2. Break-even point in dollar sales 3. Unit sales needed to attain target profit 3. Dollar sales needed to attain target profit 4. New break-even point in unit sales 4. New break-even point in dollar sales 4. Dollar sales needed to attain target profit

Answer rating: 100% (QA)

1 2 3 4 Sale value CM ratio Fixed Expenses No of units sold Particulars Sales CM Ratio Contribution ... View the full answer