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Sunn Company manufactures a single product that sells for $145 per unit and whose variable costs are $116 per unit. The companys annual fixed costs
Sunn Company manufactures a single product that sells for $145 per unit and whose variable costs are $116 per unit. The companys annual fixed costs are $461,100.
(a) Compute the company's contribution margin per unit. \begin{tabular}{|l|l|} \hline & \\ \hline & Contribution margin \\ \hline \end{tabular} (b) Compute the company's contribution margin ratio. \begin{tabular}{|l|c|c|c|c|c|} \hline Numerator: & 1 & Denominator: & = & Contribution Margin Ratio \\ \hline & 1 & & = & Contribution margin ratio \\ \hline & & & & \\ \hline \end{tabular} (c) Compute the company's break-even point in units. \begin{tabular}{|l|l|l|l|l|l|l|} \hline Numerator: & 1 & Denominator: & = & \multicolumn{2}{c|}{ Break-Even Units } \\ \hline & 1 & / & = & \multicolumn{2}{c|}{ Break-even units } \\ \hline & & & & \\ \hline \end{tabular} (d) Compute the company's break-even point in dollars of sales. \begin{tabular}{|l|l|l|l|l|l|} \hline Numerator: & 1 & Denominator: & = & Break-Even Dollars \\ \hline & & 1 & & & Break-even dollars \\ \hline \end{tabular}Step by Step Solution
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