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What are the variable expenses per unit

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Reference no: EM132756280

Problem - 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 ?xed expenses are $283,800 per year. The company plans to sell 25,100 units this year.

Required -

1. What are the variable expenses per unit?

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 attain a target profit of $151,800 per year?

4. Assume that by using a more ef?cient 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 pro?t of $151,800?

Reference no: EM132756280

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