Lindon Company is the exclusive distributor for an automotive product that sells for $33.00 per unit and has a CM ratio of 34%. The company’s fixed expenses are $157,080 per year. The company plans to sell 15,000 units this year.
Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.20 per unit. What is the company’s new break-even point in unit sales and in dollar sales?
New Break-Even point in unit sales_____________________________
New Break-Even point in dollar sales__________________________