Exercise 18-10 (Algo) Income reporting and break-even analysis LO P2 Sunn Company manufactures a single product that sells for $120 per unit and whose variable costs are $84 per unit. The company's annual fixed costs are $529,200. (1) Prepare a contribution margin income statement at the break-even point. (2) If the company's fixed costs increase by $132,000, what amount of sales (in dollars) is needed to break even? Complete this question by entering your answers in the tabs below. Required 1 Required 2
Exercise 18-10 (Algo) Income reporting and break-even analysis LO P2 Sunn Company manufactures a single product that sells for $120 per unit and whose variable costs are $84 per unit. The company's annual fixed costs are $529,200. (1) Prepare a contribution margin income statement at the break-even point. (2) If the company's fixed costs increase by $132,000, what amount of sales (in dollars) is needed to break even? Complete this question by entering your answers in the tabs below. Required 1 Required 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 18-10 (Algo) Income reporting and break-even analysis LO P2
Sunn Company manufactures a single product that sells for $120 per unit and whose variable costs are $84 per unit. The company's
annual fixed costs are $529,200.
(1) Prepare a contribution margin income statement at the break-even point.
(2) If the company's fixed costs increase by $132,000, what amount of sales (in dollars) is needed to break even?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Required 1 Required 2
Prepare a contribution margin income statement at the break-even point.
SUNN COMPANY
Contribution Margin Income Statement (at Break-Even)
Required 1
Required 2
Numerator:
Amount
If the company's fixed costs increase by $132,000, what amount of sales (in dollars) is needed to break even?
Break-Even Point in Dollars
Denominator:
1
Percentage
of sales
< Required 1
M
.
Break-Even Point in Dollars
Break-even point in dollars
Required 2 >
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