Sunn Company manufactures a single product that sells for $160 per unit and whose variable costs are $128 per unit. The companys annual fixed costs are $464,000. (1) Prepare a contribution margin income statement at the break-even point. (2) If the companys fixed costs increase by $130,000, what amount of sales (in dollars) is needed to break even?

Prepare a contribution margin income statement at the break-even point.

SUNN COMPANY
Contribution Margin Income Statement (at Break-Even)
	Amount

If the companys fixed costs increase by $130,000, what amount of sales (in dollars) is needed to break even?

Break-Even Point in Dollars
Numerator:	/	Denominator:	=	Break-Even Point in Dollars
	/		=	Break-even point in dollars