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Individually complete any two consecutive parts included in Exercises 21-9, 21-10, and/or 21-13 on page 794 of the textbook. (The exercises are reproduced below.) Be

Individually complete any two consecutive partsincluded in Exercises 21-9, 21-10, and/or 21-13 on page 794 of the textbook. (The exercises are reproduced below.) Be sure to show all calculations in detail for full credit. Respond to each of your teammates' solution posts, either affirming their solution and providing the basis for your affirmation, or offering suggestions, additional information, or alternative solutions.

IMPORTANT INSTRUCTIONS:

1. Navigate to your Group Homepage. Use your Group's Announcement tool to decide among your teammates who will work on which part. There are 8 possible parts available: parts (a), (b), (c), and (d) of Ex. 21-9; parts (1) and (2) of Ex. 21-10; and parts (1) and (2) of Ex. 21-13. Each student should complete any 2 of these 8 parts. No student should complete more than 2 parts in total.

2. Once your roles are agreed, post your solutions in the Chapter 21 team discussion problem in your team's Discussion forum.

Exercise 21-9

Sunn Co. manufactures a single product that sells for $180 per unit and whose variable costs are $135 per unit. The company's annual fixed costs are $562,500. Compute (a) contribution margin per unit, (b) contribution margin ratio, (c) break-even point in units, and (d) break-even point in dollars of sales.

Exercise 21-10

Sunn Co. manufactures a single product that sells for $180 per unit and whose variable costs are $135 per unit. The company's annual fixed costs are $562,500.

  1. Prepare a contribution margin income statement at the break-even point.

  2. If the company's fixed costs increase by $135,000, what amount of sales (in dollars) is needed to break even?

Exercise 21-13

Sunn Co. manufactures a single product that sells for $180 per unit and whose variable costs are $135 per unit. The company's annual fixed costs are $562,500. Management targets an annual income of $1,012,500. Compute the (1) unit sales to earn the target income and (2) dollar sales to earn the target income.


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