Exercise 21-13 (Algo) Computing sales to achieve target income LO C2 Sunn Company manufactures a single product that sells for $110 per unit and whose variable costs are $88 per unit. The company's annual fixed costs are $308,000. Management targets an annual income of $550,000. (1) Compute the unit sales to earn the target income. Numerator: 1 Selling price per unit 1 Denominator: (2) Compute the dollar sales to earn the target income. Numerator: 1 1 Denominator: = = = Units to Achieve Target Units to achieve target 0 Dollars to Achieve Target Dollars to achieve target 0
Exercise 21-13 (Algo) Computing sales to achieve target income LO C2 Sunn Company manufactures a single product that sells for $110 per unit and whose variable costs are $88 per unit. The company's annual fixed costs are $308,000. Management targets an annual income of $550,000. (1) Compute the unit sales to earn the target income. Numerator: 1 Selling price per unit 1 Denominator: (2) Compute the dollar sales to earn the target income. Numerator: 1 1 Denominator: = = = Units to Achieve Target Units to achieve target 0 Dollars to Achieve Target Dollars to achieve target 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 21-13 (Algo) Computing sales to achieve target income LO C2
Sunn Company manufactures a single product that sells for $110 per unit and whose variable costs are $88 per unit. The company's
annual fixed costs are $308,000. Management targets an annual income of $550,000.
(1) Compute the unit sales to earn the target income.
Numerator:
1
Selling price per unit
1
Denominator:
(2) Compute the dollar sales to earn the target income.
Numerator:
1
Denominator:
=
=
=
=
Units to Achieve Target
Units to achieve target
0
Dollars to Achieve Target
Dollars to achieve target
0
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