Question

Blanchard Company manufactures a single product that sells for $240 per unit and whose total variable...

Blanchard Company manufactures a single product that sells for $240 per unit and whose total variable costs are $192 per unit. The company’s annual fixed costs are $734,400.

(1) Prepare a contribution margin income statement for Blanchard Company showing sales, variable costs, and fixed costs at the break-even point.
(2) Assume the company’s fixed costs increase by $138,000. What amount of sales (in dollars) is needed to break even?

BLANCHARD COMPANY
Contribution Margin Income Statement (at Break-Even)
Amount Percentage of sales
Break-Even Point in Dollars
Choose Numerator: / Choose Denominator: = Break-Even Point in Dollars
/ = Break-even point in dollars

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Blanchard Company manufactures a single product that sells for $100 per unit and whose total variable...
Blanchard Company manufactures a single product that sells for $100 per unit and whose total variable costs are $76 per unit. The company’s annual fixed costs are $338,400. (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 % Sales Variable costs Contribution margin Fixed costs $ (2) Assume the company’s fixed costs increase by $126,000. What amount of sales (in dollars) is needed...
Blanchard Company manufactures a single product that sells for $110 per unit and whose total variable...
Blanchard Company manufactures a single product that sells for $110 per unit and whose total variable costs are $88 per unit. The company’s annual fixed costs are $308,000. (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 Sales Variable costs Contribution margin Fixed costs Net income Sales Variable costs Contribution margin Fixed costs Net income % Sales Variable costs Contribution margin Fixed costs...
Blanchard Company manufactures a single product that sells for $208 per unit and whose total variable...
Blanchard Company manufactures a single product that sells for $208 per unit and whose total variable costs are $156 per unit. The company’s annual fixed costs are $806,000. Management targets an annual pretax income of $1,300,000. Assume that fixed costs remain at $806,000. (1) Compute the unit sales to earn the target income. Choose Numerator: / Choose Denominator: = Units to Achieve Target / = Units to achieve target (2) Compute the dollar sales to earn the target income. Choose...
Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable...
Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable costs are $120 per unit. The company’s annual fixed costs are $629,000. The sales manager predicts that annual sales of the company’s product will soon reach 39,900 units and its price will increase to $199 per unit. According to the production manager, variable costs are expected to increase to $139 per unit, but fixed costs will remain at $629,000. The income tax rate is...
The following information is available for a company’s maintenance cost over the last seven months. Month...
The following information is available for a company’s maintenance cost over the last seven months. Month Maintenance Hours Maintenance Cost June 9 $ 4,590 July 18 7,110 August 12 5,430 September 15 6,270 October 21 7,950 November 24 8,790 December 6 3,750 Using the high-low method, estimate both the fixed and variable components of its maintenance cost. High-Low method - Calculation of variable cost per maintenance hour 0 Total cost at the high point Variable costs at the high point:...
Blanchard Company manufactures a single product that sells for $210 per unit and whose total variable...
Blanchard Company manufactures a single product that sells for $210 per unit and whose total variable costs are $168 per unit. The company’s annual fixed costs are $575,400.
Lucent Manufacturing Company makes a product that it sells for $67 per unit. The company incurs...
Lucent Manufacturing Company makes a product that it sells for $67 per unit. The company incurs variable manufacturing costs of $14 per unit. Variable selling expenses are $13 per unit, annual fixed manufacturing costs are $186,000, and fixed selling and administrative costs are $362,800 per year. Contribution margin ratio % Break-even point in dollars Break-even point in units LUCENT MANUFACTURING COMPANY Contribution Margin Income Statement Sales Variable costs Contribution margin Fixed costs Net income
1. Wang Co. manufactures and sells a single product that sells for $540 per unit; variable...
1. Wang Co. manufactures and sells a single product that sells for $540 per unit; variable costs are $324 per unit. Annual fixed costs are $836,000. Current sales volume is $4,290,000. Compute the contribution margin per unit. 2. A firm expects to sell 24,800 units of its product at $10.80 per unit and to incur variable costs per unit of $5.80. Total fixed costs are $68,000. The total contribution margin is: 3. McCoy Brothers manufactures and sells two products, A...
1) Bears Company sells a product for $15 per unit. The variable cost is $10 per...
1) Bears Company sells a product for $15 per unit. The variable cost is $10 per unit and fixed costs are $1,750,000. Determine: The Break-Even point in sales units The Break-Even point if selling price were increased to $655 per unit 2) Bear Company sells a product for $15 per unit. The Variable cost is $10 per unit and fixed costs are $1,750,000. Determine: The Break-Even Point in sales units The Sales units required for the company to achieve a...
Brummel Corporation manufactures a single product. The selling price is $120 per unit, and variable costs...
Brummel Corporation manufactures a single product. The selling price is $120 per unit, and variable costs amount to $84 per unit. The fixed costs are $42,000 per month (round any units to the next highest full unit). Calculate: (show your calculations and round to 2 decimal places) What is the contribution margin per unit? What is the contribution margin ratio per unit? What is the monthly sales volume (in dollars) at the break-even point? How many units must be sold...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT