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Exercise 5-10 (Algo) Income reporting and break-even analysis LO P2 Sunn Company manufactures a single product that sells for $110 per unit and whose variable
Exercise 5-10 (Algo) Income reporting and break-even analysis LO P2 Sunn Company manufactures a single product that sells for $110 per unit and whose variable costs are $88 per unit. The company's annual fixed costs are $308,000. (1) Prepare a contribution margin income statement at the break-even point. (2) If the company's fixed costs increase by $125,000, what amount of sales (in dollars) is needed to break even? \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ SUNN COMPANY } \\ \hline Contribution Margin Income Statement (at Break-Even) \\ \hline & \multicolumn{1}{|c|}{ Amount } \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline \end{tabular} If the company's fixed costs increase by $125,000, what amount of sales (in dollars) is needed to break even? \begin{tabular}{|l|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Break-Even Point in Dollars } \\ \hline Numerator: & 1 & Denominator: & = & Break-Even Point in Dollars \\ \hline & 1 & & = & Break-even point in dollars \\ \hline & & & & \\ \hline \end{tabular}
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