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!Sunn Company manufactures a single product that sells for $120 per unit and whose variable...

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Accounting

!Sunn Company manufactures a single product that sells for $120 per unit and whose variable costs are $84 per unit. The company's
annual fixed costs are $529,200. Management targets an annual income of $900,000.
(1) Compute the unit sales to earn the target income.
Required information
[The following information applies to the questions displayed below.]
Hudson Company reports the following contribution margin income statement.
The company is considering buying a new machine that will increase its fixed costs by $36,000 per year and decrease its variable
costs by $10 per unit. Prepare a contribution margin income statement for the next year assuming the company purchases this
machine.
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