Item$3$

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Item $3$

Lindon Company is the exclusive distributor for an automotive product selling for $$38\mathrm{.}00$ per unit with a CM ratio of $30\%.$ The company$$s fixed expenses are $$228,000$ per year and it plans to sell $23,000$ units this year.

Required:

What are the variable expenses per unit?

Note: 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 $$114,000$ per year?

Assume by using a more efficient shipper, the company can reduce its variable expenses by $$3\mathrm{.}80$ per unit. What is the company$$s new break$-$even point in unit sales and dollar sales? What dollar sales are required to attain a target profit of $$114,000?$

Variable expense per unit$$26\mathrm{.}60$selected answer correct$2.$ Break$-$even point in units$20,000$selected answer correct$2.$ Break$-$even point in dollar sales$$760,000$selected answer correct$3.$ Unit sales needed to attain target profit$30,000$selected answer correct$3.$ Dollar sales needed to attain target profit $$1,140,000$selected answer correct$4.$ New break$-$even point in unit sales $15,000$selected answer correct$4.$ New break$-$even point in dollar sales $$570,000$selected answer correct$4.$ Dollar sales needed to attain target profit$$3,898,800$selected answer incorrect