Exercise 5-10 (Algo) Income reporting and break-even analysis LO P2 Sunn Company manufactures a single...
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Exercise 5-10 (Algo) Income reporting and break-even analysis LO P2
Sunn Company manufactures a single product that sells for $208 per unit and whose variable costs are $156 per unit. The companys annual fixed costs are $806,000. (1) Prepare a contribution margin income statement at the break-even point. (2) If the companys fixed costs increase by $140,000, what amount of sales (in dollars) is needed to break even?
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Required 2
Prepare a contribution margin income statement at the break-even point.
SUNN COMPANY
Contribution Margin Income Statement (at Break-Even)
Amount
Percentage of sales
If the companys fixed costs increase by $140,000, what amount of sales (in dollars) is needed to break even?
Break-Even Point in Dollars
Numerator:
/
Denominator:
=
Break-Even Point in Dollars
/
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Break-even point in dollars
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