Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. The company’s annual fixed costs are $562,500. 1. Prepare a contribution margin income statement for Blanchard Company showing sales, variable costs, and fixed costs at the break-even point. 2. If the company’s fixed costs increase by $135,000, what amount of sales (in dollars) is needed to break even?
Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. The company’s annual fixed costs are $562,500. 1. Prepare a contribution margin income statement for Blanchard Company showing sales, variable costs, and fixed costs at the break-even point. 2. If the company’s fixed costs increase by $135,000, what amount of sales (in dollars) is needed to break even?
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6EB: Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit...
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Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable
costs are $135 per unit. The company’s annual fixed costs are $562,500.
1. Prepare a contribution margin income statement for Blanchard Company showing sales, variable
costs, and fixed costs at the break-even point.
2. If the company’s fixed costs increase by $135,000, what amount of sales (in dollars) is needed to break
even?
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