tsИсGrawHillLindon Company is the exclusive distributor for an automotive product that sells for $36.00 per unit and has a CM ratio of 30%. Thecompany's fixed expenses are $210,600 per year. The company plans to sell 22,300 units this year.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 attain a target profit of $102,600 per year?4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.60 per unit. What is thecompany's new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $102,600?Answer is complete but not entirely correct.$1. Variable expense per unit2. Break-even point in units2. Break-even point in dollar sales3. Unit sales needed to attain target profit3. Dollar sales needed to attain target profit4. New break-even point in unit sales4. New break-even point in dollar sales4. Dollar sales needed to attain target profit$$$$25.20✔19,500702,000 ✓24,000 X864,000 X14,625✔527,100630,000 X< Prev2 of 5#Next >

Break even is the point at which the entity is in a situation of no profit and no loss. The entity…

Answered: Lindon Company is the exclusive…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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