Sunn Company manufactures a single product that sells for $160 per unit and whose variable costs are $120 per unit. The company’s annual fixed costs are $596,000.

 Exercise 5-10 (Algo) Income reporting and break-even analysis LO P2

Sunn Company manufactures a single product that sells for $160 per unit and whose variable costs are $120 per unit. The company’s annual fixed costs are $596,000.
 
(1) Prepare a contribution margin income statement at the break-even point.

(2) If the company’s fixed costs increase by $134,000, what amount of sales (in dollars) is needed to break even?

 

Thanks