Sunn Company manufactures a single product that sells for $130 per unit and whose variable costs are $104 per unit. The company's annual fixed costs are $429,000. |(a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. Numerator: Denominator: Contribution Margin Ratio %3D Contribution morgin rntio

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Chapter7: Cost-volume-profit Analysis
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Sunn Company manufactures a single product that sells for $130 per unit and whose variable costs are $104 per unit. The company's
annual fixed costs are $429,000.
(a) Compute the company's contribution margin per unit.
Contribution margin
(b) Compute the company's contribution margin ratio.
Numerator:
Denominator:
Contribution Margin Ratio
%3D
Contribution margin ratio
(c) Compute the company's break-even point in units.
Numerator:
Denominator:
Break-Even Units
Break-even units
%3D
(d) Compute the company's break-even point
dollars of sales.
Numerator:
Denominator:
Break-Even Dollars
%3D
Break-even dollars
%3D
Transcribed Image Text:Sunn Company manufactures a single product that sells for $130 per unit and whose variable costs are $104 per unit. The company's annual fixed costs are $429,000. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. Numerator: Denominator: Contribution Margin Ratio %3D Contribution margin ratio (c) Compute the company's break-even point in units. Numerator: Denominator: Break-Even Units Break-even units %3D (d) Compute the company's break-even point dollars of sales. Numerator: Denominator: Break-Even Dollars %3D Break-even dollars %3D
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