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

Reference no: EM131902209

Problem

Lindon Company is the exclusive distributor for an automotive product that sells for $41.00 per until and has a CM ratio 37%. The company's fixed expenses are $151, 700 per year. The company plans to sell 11,000 units this year. Use the equation method:

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

Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $4.30 per unit.

What is the company's new break-even point in unit sales and in dollar sales?

Repeat (2) above using the formula method. What is the break-even point in unit sales and in dollar sales? (Do not round intermediate calculations.)

Reference no: EM131902209

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