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Exercise 1 8 - 1 0 ( Algo ) Income reporting and break - even analysis LO P 2 Sunn Company manufactures a single product

Exercise 18-10(Algo) Income reporting and break-even analysis LO P2
Sunn Company manufactures a single product that sells for $100 per unit and whose variable costs are $76 per unit. The company's annual fixed costs are $338,400.
(1) Prepare a contribution margin income statement at the break-even point.
(2) If the company's fixed costs increase by $126,000, what amount of sales (in dollars) is needed to break even?
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If the company's fixed costs increase by $126,000, what amount of sales (in dollars) is needed to break even?
\table[[Break-Even Point in Dollars],[Numera,,1,Denominator:,,=,Break-Even Point in Dollars],[Total fixed costs,O?,1,Contribution margin ratio,0,=,Break-even point in dollars],[$,464,400O?,1,,0%,=,185,760,000
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