1) Variable expense per unit = 22*70% = 15.40
2) Break even unit = Fixed cost/Contribution margin per unit = 105600/6.60 = 16000 Units
Break even sales = 16000*22 = $352000
3) Units sales needed to attain target profit = (105600+39600)/6.60 = 22000 Units
Dollar sales needed to attain target profit = 22000*22 = $484000
4) New break even point = 105600/8.8 = 12000 Units
Break even sales = 12000*22 = $264000
Dollar sales needed to attain target profit = (105600+39600)/0.40 = $363000
Lindon Company is the exclusive distributor for an automotive product that sells for $22.00 per unit...
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