DE expenses, by how much would you expect monthly net operating income to increase? EXERCISE 6-13 Target Profit and Break-Even Analysis (L03, L04, L05, L06] Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit and has a CM ratio of 30%. The company's fixed expenses are $180,000 per year. The company plans to sell 16,000 units this year. Required: 1. What are the variable expenses per unit? 2. Using the equation method: a. What is the break-even point in units and sales dollars? b. What sales level in units and in sales dollars is required to earn an annual profit of $60,000? C. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $4 per unit. What is the company's new break-even point in units and sales dollars? 3. Repeat (2) above using the formula method. Group 1: Each student in Group 1 is to do the following two parts: Part 1: do parts 2a, 2b, 2c of e6-13 (p. 266) and post your calculations/answers (remember click "Reply" below and put "Group 1" in subject line). Part 2: read and then reply to the posts of at least two students in the class. =========