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Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs are $135 per ure. The compar annual fixed costs are $562,500. (1) Prepare a contribution margin income statement at the break-even point. (2) If the company's fixed costs increase by $135,000, what amount of sales (in dollars) is needed to break even?

Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs are $135 per ure. The compar annual fixed costs are $562,500. (1) Prepare a contribution margin income statement at the break-even point. (2) If the company's fixed costs increase by $135,000, what amount of sales (in dollars) is needed to break even?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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25 Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs are $135 per ure. The company annual fixed costs are $562,500. (1) Prepare a contribution margin income statement at the break-even point. (2) If the company's fixed costs increase by $135,000, 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 Prepare a contribution margin income statement at the break-even point. SUNN COMPANY Contribution Margin Income Statement (at Break-Even) Amazint
Transcribed Image Text:25 Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs are $135 per ure. The company annual fixed costs are $562,500. (1) Prepare a contribution margin income statement at the break-even point. (2) If the company's fixed costs increase by $135,000, 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 Prepare a contribution margin income statement at the break-even point. SUNN COMPANY Contribution Margin Income Statement (at Break-Even) Amazint
Prepare a contribution margin income statement at the break-even point. SUNN COMPANY Contribution Margin Income Statement (at Break-Even) Amount Contribution margin Fixed costs Income Sales Variable costs Required 1 Required 2 Numerator: 1 Required 1 Required 2 Numerator: $ If the company's fixed costs increase by $135,000, what amount of sales (in dollars) is needed to bre Break-Even Point in Dollars Denominator: Contribution margin ratio Fixed costs per unit Selling pe per unit Total fixed costs Variable costs per unit < Required 1 4 0 < Required 1 Required 2 > = Break-Even Point in Dollars Break-even point in dollars = If the company's fixed costs increase by $135,000, what amount of sales (in dollars) Break-Even Point in Dollars Denominator: < Required 1 Required 2 > = 0 Break-Even Poir Break-even poin Required 2
Transcribed Image Text:Prepare a contribution margin income statement at the break-even point. SUNN COMPANY Contribution Margin Income Statement (at Break-Even) Amount Contribution margin Fixed costs Income Sales Variable costs Required 1 Required 2 Numerator: 1 Required 1 Required 2 Numerator: $ If the company's fixed costs increase by $135,000, what amount of sales (in dollars) is needed to bre Break-Even Point in Dollars Denominator: Contribution margin ratio Fixed costs per unit Selling pe per unit Total fixed costs Variable costs per unit < Required 1 4 0 < Required 1 Required 2 > = Break-Even Point in Dollars Break-even point in dollars = If the company's fixed costs increase by $135,000, what amount of sales (in dollars) Break-Even Point in Dollars Denominator: < Required 1 Required 2 > = 0 Break-Even Poir Break-even poin Required 2
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