Question
Exercise 18-13 (Algo) Computing sales to achieve target income LO C2 Sunn Company manufactures a single product that sells for $120 per unit and
Exercise 18-13 (Algo) Computing sales to achieve target income LO C2 Sunn Company manufactures a single product that sells for $120 per unit and whose variable costs are $90 per unit. The company's annual fixed costs are $432,000. Management targets an annual income of $750,000. (1) Compute the unit sales to earn the target income. Numerator: Fixed cost plus target income Denominator: Units to Achieve Target Contribution margin per unit = Units to achieve target (2) Compute the dollar sales to earn the target income. Numerator: Denominator: = Dollars to Achieve Target = Dollars to achieve target
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