Sunn Company manufactures a single product that sells for $110 per unit and whose variable costs are $88 per unit. The company's annual fixed costs are $308,000. Management targets an annual income of $550,000. Answer is complete but not entirely correct. (1) Compute the unit sales to earn the target income. Numerator: Fixed costs $ Denominator: Units to Achieve Target Contribution margin per Units to achieve target unit 308,000 x $ 550,000 x= 1 units (2) Compute the dollar sales to earn the target income. Numerator: Fixed costs $ Denominator: Contribution margin per Dollars to Achieve Target = Dollars to achieve target unit 308,000 / 100% x = $ 308,000