Question
Sunn Company manufactures a single product that sells for $160 per unit and whose variable costs are $112 per unit. The company's annual fixed
Sunn Company manufactures a single product that sells for $160 per unit and whose variable costs are $112 per unit. The company's annual fixed costs are $734,400. (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: Contribution margin per unit (c) Compute the company's break-even point in units. Numerator: Fixed costs Denominator: = Contribution Margin Ratiol Selling price per unit = Contribution margin ratio 0 Denominator: Break-Even Units Contribution margin per unit Break-even units (d) Compute the company's break-even point in dollars of sales. Numerator: Fixed costs Denominator: = Contribution margin ratio Break-Even Dollars Break-even dollars 0
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