Sunn Company manufactures a single product that sells for $170 per unit and whose variable costs are $136 per unit. The company's annual fixed costs are $506,600. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. Numerator: Denominator: Contribution Margin Ratio %3D Contribution margin ratio %3D (c) Compute the company's break-even point in units. Numerator: Denominator: Break-Even Units %3D Break-even units %3D (d) Compute the company's break-even point in dollars of sales. Numerator: Denominator: Break-Even Dollars %3D %3D Break-even dollars

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Sunn Company manufactures a single product that sells for $170 per unit and whose variable costs are $136 per unit. The
company's annual fixed costs are $506,600.
(a) Compute the company's contribution margin per unit.
Contribution margin
(b) Compute the company's contribution margin ratio.
Numerator:
Denominator:
Contribution Margin Ratio
Contribution margin ratio
=
(c) Compute the company's break-even point in units.
Numerator:
Denominator:
Break-Even Units
Break-even units
(d) Compute the company's break-even point in dollars of sales.
Numerator:
Denominator:
Break-Even Dollars
%3D
Break-even dollars
Transcribed Image Text:Sunn Company manufactures a single product that sells for $170 per unit and whose variable costs are $136 per unit. The company's annual fixed costs are $506,600. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. Numerator: Denominator: Contribution Margin Ratio Contribution margin ratio = (c) Compute the company's break-even point in units. Numerator: Denominator: Break-Even Units Break-even units (d) Compute the company's break-even point in dollars of sales. Numerator: Denominator: Break-Even Dollars %3D Break-even dollars
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