(Solved): Sunn Company manufactures a single product that sells for $160 per unit and whose variable costs a ...

Sunn Company manufactures a single product that sells for $160 per unit and whose variable costs are $128 per unit. The company's annual fixed costs are $464,000. Management targets an annual income of $800,000. (1) Compute the unit sales to earn the target income. Numerator: 1 Denominator: (2) Compute the dollar sales to earn the target income. Numerator: 1 Denominator: = II = Units to Achieve Target Units to achieve target Dollars to Achieve Target Dollars to achieve target Hudson Company reports the following contribution margin income statement. Sales (10,000 units at $300 each) Variable costs (10,000 units at $240 each) Contribution margin Fixed costs Income HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Exercise 18-19 (Algo) Evaluating strategies-new machine LO C2 The company is considering buying a new machine that will increase its fixed costs by $42,500 per year and decrease its variable costs by $10 per unit. Prepare a contribution margin income statement for the next year assuming the company purchases this machine. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales Variable costs Contribution margin Fixed costs Income/Loss $ 3,000,000 2,400,000 600,000 420,000 $ 180,000