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Exercise 18-11 Income reporting and break-even analysis LO P2 Blanchard Company manufactures a single product that...

Exercise 18-11 Income reporting and break-even analysis LO P2

Blanchard Company manufactures a single product that sells for $136 per unit and whose total variable costs are $102 per unit. The company’s annual fixed costs are $496,400.

(1) Prepare a contribution margin income statement for Blanchard Company at the break-even point.

BLANCHARD COMPANY
Contribution Margin Income Statement (at Break-Even)
Amount Percentage of sales

(2) Assume the company’s fixed costs increase by $131,000. What amount of sales (in dollars) is needed to break even?

Break-Even Point in Dollars
Choose Numerator: / Choose Denominator: = Break-Even Point in Dollars
/ = Break-even point in dollars
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