Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs...

Transcribed Image Text:

Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs are $135 per unit. The company's annual fixed costs are $562,500. Management targets an annual income of $1,012,500. (1) Compute the unit sales to earn the target income. Numerator: Fixed cost plus target income Answer is not complete. Denominator: Units to Achieve Target Contribution margin per unit Units to achieve target (2) Compute the dollar sales to earn the target income. Numerator: Fixed cost plus target income 0 Denominator: Dollars to Achieve Target Contribution margin ratio = Dollars to achieve target 0 Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs are $135 per unit. The company's annual fixed costs are $562,500. Management targets an annual income of $1,012,500. (1) Compute the unit sales to earn the target income. Numerator: Fixed cost plus target income Answer is not complete. Denominator: Units to Achieve Target Contribution margin per unit Units to achieve target (2) Compute the dollar sales to earn the target income. Numerator: Fixed cost plus target income 0 Denominator: Dollars to Achieve Target Contribution margin ratio = Dollars to achieve target 0