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Income reporting and break-even analysis Sunn Co. manufactures a single product that sells for $180 per unit and whose variable costs are $135 per unit.

Income reporting and break-even analysis

Sunn Co. manufactures a single product that sells for $180 per unit and whose variable costs are $135 per unit. The companys annual fixed costs are $562,500. 1. Prepare a contribution margin income statement at the break-even point. 2. If the companys fixed costs increase by $135,000, what amount of sales (in dollars) is needed to break even?

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