Sunn Company manufactures a single product that sells for $190 per unit and whose variable costs are $133 per unit. The company's annual fixed costs are $735,300. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. 1 Numerator: (c) Compute the company's break-even point in units. 1 1 Numerator: Denominator: Numerator: Denominator: (d) Compute the company's break-even point in dollars of sales. 1 1 Denominator: = Contribution Margin Ratio Contribution margin ratio = = = = = Break-Even Units Break-even units Break-Even Dollars Break-even dollars

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Exercise 18-9 (Algo) Contribution margin and break-even LO P2
Sunn Company manufactures a single product that sells for $190 per unit and whose variable costs are $133 per unit. The company's
annual fixed costs are $735,300.
(a) Compute the company's contribution margin per unit.
Contribution margin
(b) Compute the company's contribution margin ratio.
1
1
Numerator:
(c) Compute the company's break-even point in units.
1
Numerator:
Denominator:
Numerator:
Denominator:
(d) Compute the company's break-even point in dollars of sales.
1
1
Denominator:
= Contribution Margin Ratio
Contribution margin ratio
=
=
=
=
Break-Even Units
Break-even units
Break-Even Dollars
Break-even dollars
Transcribed Image Text:Exercise 18-9 (Algo) Contribution margin and break-even LO P2 Sunn Company manufactures a single product that sells for $190 per unit and whose variable costs are $133 per unit. The company's annual fixed costs are $735,300. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. 1 1 Numerator: (c) Compute the company's break-even point in units. 1 Numerator: Denominator: Numerator: Denominator: (d) Compute the company's break-even point in dollars of sales. 1 1 Denominator: = Contribution Margin Ratio Contribution margin ratio = = = = Break-Even Units Break-even units Break-Even Dollars Break-even dollars
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