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1- Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs are $126 per unit. The company's annual fixed
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Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs are $126 per unit. The company's annual fixed costs are $842,400. (1) Prepare a contribution margin income statement at the break-even point. (2) If the company's fixed costs increase by $141,000, 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 Required 1 Required 2 Prepare a contribution margin income statement at the break-even point. Required 1 Required 2 If the company's fixed costs increase by $141,000, what amount of sales (in dollars) is needed to break even? Break-Even Point in Dollars Numerator: Denominator: E Break-Even Point in Dollars Break-even point in dollars Information for two companies follows: Stanbunst Skittles Company Company Sales $ 4,244,866 $ 4,416,666 Contribution margin 2,764,866 1,376,666 Fixed costs 2,252,866 946,666 (1) Compute the degree of operating leverage (DOL) for each company. (2} Which company is expected to produce a greater percent increase in income from a 20% increase in sales? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 1 Required 2 Compute the degree of operating leverage (DOL) for each company. Degree of Operating Leverage Numerator: - Denominator: = Ratio 1 = Degree of Operating Leverage Skittles's DOL Starburst's DOL Complete this question by entering your answers in the tabs below. Required 1 Required 2 Which company is expected to produce a greater percent increase in income from a 20% increase in sales? Which company is expected to produce a greater percent increase in income from a 20% increase in sales? I Required 1 Required 2 Required 3 Compute the degree of operating leverage for each company. (Round your answer to 1 decimal place.) Degree of operating leverage _ _Step by Step Solution
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