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What is the company new break-even point in unit sales

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Reference no: EM132986827

Lindon Company is the exclusive distributor for an automotive product that sells for $20.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $93,000 per year. The company plans to sell 16,700 units this year.

Required:

Problem 1. What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places.)

Problem 2. What is the break-even point in unit sales and in dollar sales?

Problem 3. What amount of unit sales and dollar sales is required to attain a target profit of $33,000 per year?

Problem 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $2.00 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 $33,000?

Reference no: EM132986827

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