4

Sunn Company manufactures a single product that sells for $205 per unit and whose variable costs are $164 per unit. The company's annual fixed costs are $553,500. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. Numerator: Denominator: = Contribution Margin Ratio 1 = Contribution margin ratio (c) Compute the company's break-even point in units. Numerator: enominator: = Brea ven nits = Break-even units (d) Compute the company's break-even point in dollars of sales. Numerator: Denominator: = Break-Even Dollars 1 = Break-even dollars