Exercise 5-10

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Exercise 5-7 (Algo) Contribution margin LO A1 A jeans maker is designing a new line of jeans called Slams. Slams will sell for $285 per unit and cost $176.70 per unit in variable costs to make. Fixed costs total $69,000. (Round your answers to 2 decimal places.) Sunn Company manufactures a single product that sells for $220 per unit and whose variable costs are $176 per unit. The company's annual fixed costs are $664,400. (1) Prepare a contribution margin income statement at the break-even point. (2) If the company's fixed costs increase by $136,000, what amount of sales (in dollars) is needed to break even? Complete this question by entering your answers in the tabs below. Prepare a contribution margin income statement at the break-even point. Sunn Company manufactures a single product that sells for $220 per unit and whose variable costs are $176 per unit. The company's annual fixed costs are $664,400. (1) Prepare a contribution margin income statement at the break-even point. (2) If the company's fixed costs increase by $136,000, what amount of sales (in dollars) is needed to break even? Complete this question by entering your answers in the tabs below