Lindon Company is the exclusive distributor for an automotive product that sells for 50.00 per unit and has a CM ratio of 37%. The company's fixed expenses are $259,000 per year. The company plans to sell 15,000 units this year.
1. Variable expenses per unit = 31.50
2. Break-even point in unit sales and in dollar sales = 14,000 and 700,000
3. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by 3.70 per unit. What is the company's new break-even point in unit sales and in dollar sales? Using the equation method
4 What is the breakeven point in unit sales and in dollar sales? using the formula method
5. What amount of unit sales and dollar sales is required to earn an annual profit of 92,500 using the formula method
6. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.70 per unit. What is the company's new break-even point in unit sales and in dollar sales? using formula method.