New break-even point in unit sales and in dollar sales

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Reference no: EM131202831

Lindon Company is the exclusive distributor for an automotive product that sells for $33.00 per unit and has a CM ratio of 35%. The company’s fixed expenses are $300,300 per year. The company plans to sell 27,000 units this year

a. What amount of unit sales and dollar sales is required to earn an annual profit of $57,750? (Do not round intermediate calculations.)

b. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.60 per unit. What is the company’s new break-even point in unit sales and in dollar sales? (Do not round intermediate calculations. Round up break even point answers to the nearest whole number.)

Reference no: EM131202831

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