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 companys annual fixed costs are $806,000. (1) Prepare a contribution margin income statement at the break-even point. (2) If the companys 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.

SUNN COMPANY
Contribution Margin Income Statement (at Break-Even)
	Amount	Percentage of sales

If the companys fixed costs increase by $140,000, what amount of sales (in dollars) is needed to break even?

Break-Even Point in Dollars
Numerator:	/	Denominator:	=	Break-Even Point in Dollars
	/		=	Break-even point in dollars