Exercise $5-14($Algo$)$ Break$-$Even and Target Profit Analysis $[$LO$5-3,$ LO$5-4,$ LO$5-5,$ LO$5-6]$

Lindon Company is the exclusive distributor for an automotive product that sells for $$28\mathrm{.}00$ per unit and has a CM

ratio of $30\%.$ The company's fixed expenses are $$147,000$ per year. The company plans to sell $19,500$ units this year.

Required:

What are the varlable 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 $$63,000$ per year?

Assume that by using a more efficient shipper, the company is able to reduce its varlable expenses by $$2\mathrm{.}80$ 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 $$63,000?$