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Exercise 18-9 (Algo) Contribution margin and break-even LO P2 Sunn Company manufactures a single product that sells for $195 per unit and whose variable costs are $156 per unit. The company's annual fixed costs are $510,900. (a) Compute the company's contribution margin per unit. Sales per unit Less: Variable cost per unit Contribution margin (b) Compute the company's contribution margin ratio. Numerator: 1 Denominator: Contribution margin per unit / Selling price per unit = Contribution Margin Ratio Contribution margin ratio (c) Compute the company's break-even point in units. Numerator: 1 Denominator: Fixed costs 1 Contribution margin per unit Break-Even Units Break-even units (d) Compute the company's break-even point in dollars of sales. Numerator: 1 Denominator: Fixed costs 1 Contribution margin ratio = Break-Even Dollars = Break-even dollars