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Sunn Company manufactures a single product that sells for 110 per unit and whose variable...

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Sunn Company manufactures a single product that sells for 110 per unit and whose variable costs are 88 per unit The company s annual fixed costs are 308 000 Management targets an annual income of 550 000 1 Compute the unit sales to earn the target income Numerator 1 X 1 308 000 x 1 Fixed costs Answer is complete but not entirely correct Fixed costs Denominator Contribution margin per unit 2 Compute the dollar sales to earn the target income Numerator I X 1 308 000x 1 Denominator Contribution margin per unit E 550 000 X 100 X X B E Units to Achieve Target Units to achieve target 1 units Dollars to Achieve Target Dollars to achieve target 308 000

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