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Sunn Company manufactures a single product that sells for $145 per unit and whose variable costs are $87 per unit. The companys annual fixed costs
Sunn Company manufactures a single product that sells for $145 per unit and whose variable costs are $87 per unit. The companys annual fixed costs are $916,400. Management targets an annual income of $1,450,000.
(1) Compute the unit sales to earn the target income. \begin{tabular}{|c|c|c|c|c|} \hline \multirow[t]{2}{*}{ Numerator: } & 1 & Denominator: & = & Units to Achieve Target \\ \hline & 1 & & = & Units to achieve target \\ \hline & & & & \\ \hline \multicolumn{5}{|c|}{ (2) Compute the dollar sales to earn the target income. } \\ \hline \multirow[t]{2}{*}{ Numerator: } & 1 & Denominator: & = & Dollars to Achieve Target \\ \hline & l & & = & Dollars to achieve target \\ \hline & & & & \\ \hline \end{tabular}Step by Step Solution
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