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?
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BLANCHARD COMPANY |
Contribution Margin Income Statement
(at Break-Even) |
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Amount |
Percentage of sales |
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Break-Even Point in Dollars |
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Break-Even Point in Dollars |
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Break-even point in dollars |
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