Break even point = Fixed cost/Contribution margin per unit
= 62,760/(114-84)
= 62,760/30
= 2092 units
Option B is the answer
12 MC Qu. 123 A company manufactures and sells a product... A company manufactures and sells...
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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. Prepare a contribution margin income statement for Blanchard Company showing sales, variable costs, and fixed costs at the break-even point. 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...
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 $596,000. (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 $134,000. What amount of sales (in dollars) is needed to break even? Complete this question by entering your answers in the tabs...
Hardy Co. manufactures a product that sells for $12 per unit. Total fixed costs are $96,000 and variable costs are $7 per unit. Hardy can buy a newer production machine that will increase total fixed costs by $22,800 but variable costs will be decreased by $0.40 per unit. Answer the following (3 points each). A. Current break-even point in units B. New break-even point in units 5. Difference in break-even points in dollars
Exercise 18-9 Contribution margin and break-even P2 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. Use this information to compute the company's (a) contribution margin, (b) contribution margin ratio, (c) break-even point in units, and (d) break-even point in dollars of sales.