Home / Expert Answers / Accounting / lindon-company-is-the-exclusive-distributor-for-an-automotive-product-that-sells-for-44-00-pa355

# (Solved): Lindon Company is the exclusive distributor for an automotive product that sells for \( \\$ 44,00 \) ...

Lindon Company is the exclusive distributor for an automotive product that sells for \( \\$ 44,00 \) per unit and has a CM ratio of \( 30 \% \). The company's fixed expenses are \( \\$ 283,800 \) per year. The company plans to sell 25,100 Jinits this yeat. Required: 1. What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places.) 2. What is the break-even point in unit sales and in dollar sales? 3. What amount of unit sales and dollar sales is required to attaint a target profit of \( \\$ 151.800 \) per yea?? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by \( \\$ 4.40 \) 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 \( \\$ 151,800 \) ?

We have an Answer from Expert