Sunn Company manufactures asingle product that sels for $130 per unt and whose variable costs are $104 per unt. The company's annual faed costs are $429,000. Compute the company's contbuton nargin per unit. Contrbulion margin Compute the company's contribution margin ratio. Numerator: Denominator. Contribution Margin Ratio
Sunn Company manufactures asingle product that sels for $130 per unt and whose variable costs are $104 per unt. The company's annual faed costs are $429,000. Compute the company's contbuton nargin per unit. Contrbulion margin Compute the company's contribution margin ratio. Numerator: Denominator. Contribution Margin Ratio
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sunn Company manufactures a single product that sels for $130 per unt and whose variable costs are $104 per unt. The company's
annual fxed costs are $429,000.
) Compute the company's contibution margin per unit.
Contribution margin
0) Compute the company's contriuton margin ratio.
Numerator.
Denominator:
Contribution Margin Ratio
: Contrbution margin ratio
(e) Compute the company's break-even point in units.
Numerator.
Denominator:
Break-Even Units
Break-even units
(4) Compute the company's break-even point in doars of sale.
Numerator:
Denominator:
Break-Even Dollars
Breakeven dolars
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