FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
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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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- Manjiarrow_forwardCampbell Corporation sells products for $31 each that have variable costs of $18 per unit. Campbell's annual fixed cost is $295,100. Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars.arrow_forwardSunn Company manufactures a single product that sells for $215 per unit and whose variable costs are $172 per unit. The company's annual fixed costs are $597,700. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. Numerator: (c) Compute the company's break-even point in units. 1 1 Numerator: 1 1 Numerator: Denominator: Denominator: (d) Compute the company's break-even point in dollars of sales. 1 1 Denominator: = = II II = Contribution Margin Ratio Contribution margin ratio Break-Even Units Break-even units Break-Even Dollars Break-even dollarsarrow_forward
- Zachia Ltd provides the following data regarding its four product lines: Product Sales mix Weighted average contribution margin per unit (WACMU) Fixed costs Desired profit after tax w Y 60 20 15 $13.7 $71,000 $33,950 The corporate tax rate is 30% Required Calculate the number of units of Product X that must be sold in order to achieve the desired after-tax profit?arrow_forwardXYZ Company's product has a contribution margin per unit of $12 and a variable cost ratio of 80%. What is the selling price of the product? Select one: O a. $37.5. O b. $28.125. O c. $22.5. O d. $120. O e. $60.arrow_forwardSohar Company has a product with a selling price per unit of OMR 200, the unit variable cost is OMR 110, and the total monthly fixed costs are OMR 300,000. How much is Sohar's contribution margin ratio? Select one: O a. 45% O b. None of the answers are correct O c. 150% O d. 55% O e. 182%arrow_forward
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