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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 $208 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 $208 per unit and whose variable costs are $156 per unit. The company's annual fixed costs are $806,000. (1) Prepare a contribution margin income statement at the break-even point. (2) If the company's fixed costs increase by $140,000, 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 Prepare a contribution margin income statement at the break-even point. Required 1 Required 2 Prepare a contribution margin income statement at the break-even point. SUNN COMPANY Contribution Margin Income Statement (at Break-Even) Amount Percentage of sales Sales Variable costs Contribution margin 0% Fixed costs Income $ 0 $ (1) Prepare a contribution margin income statement at the break-even point. (2) If the company's fixed costs increase by $140,000, 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 If the company's fixed costs increase by $140,000, what amount of sales (in dollars is needed to break even? Break-Even Point in Dollars Denominator: Numerator: Break-Even Point in Dollars Break-even point in dollars 0
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