Sunn Company manufactures a single product that sells for $120 per unit and whose variable costs are $90 per unit. The company's annual fixed costs are $432,000. Management targets an annual income of $750,000. (1) Compute the unit sales to earn the target income. Numerator: Denominator: (2) Compute the dollar sales to earn the target income. Numerator: Denominator: = = Units to Achieve Target Units to achieve target 0 Dollars to Achieve Target Dollars to achieve target 0
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Contribution margin per unit = Selling price per unit - Variable cost per unit Contribution margin per unit = $120 - $90 = $30 Show more…
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