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Sunn Company manufactures a single product that sells for $250 per unit and whose variable costs are $200 per unit. The companys annual fixed costs
Sunn Company manufactures a single product that sells for $250 per unit and whose variable costs are $200 per unit. The companys annual fixed costs are $770,000.
Exercise 5-10 (Algo) Income reporting and break-even analysis LO P2 Sunn Company manufactures a single product that sells for $250 per unit and whose variable costs are $200 per unit. The company's annual fixed costs are $770,000. (1) Prepare a contribution margin income statement at the break-even point. (2) If the company's fixed costs increase by $139,000, what amount of sales (in dollars) is needed to break even? \begin{tabular}{|c|c|c|c|c|c|} \hline Required 1 & Required 2 & & & & \\ \hline \multicolumn{6}{|c|}{ If the company's fixed costs increase by $139,000, what amount of sales (in dollars) is needed to break } \\ \hline \multicolumn{6}{|c|}{ Break-Even Point in Dollars } \\ \hline \multirow{2}{*}{\multicolumn{2}{|c|}{ Numerator: }} & 1 & Denominator: & = & Break-Even Point in Dollars \\ \hline & & l & & = & Break-even point in dollars \\ \hline & & & & & \\ \hline \end{tabular} Prepare a contribution margin income statement at the break-even pointStep by Step Solution
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