Contribution margin income statement
Break even unit = (770000)/250-200 = 15400
Amount | Percentage of Sales | |
Sales | 3850000 | 100% |
Variable cost | 3080000 | 80% |
Contribution margin | 770000 | 20% |
Fixed cost | 770000 | |
Operating income | 0 |
Break even point
Choose numerator | / | Choose denominator | = | Break even point in dollars |
Fixed cost | / | Contribution margin | = | Break even point in dollars |
(770000+139000) | / | 0.20 | = | $4545000 |
Blanchard Company manufactures a single product that sells for $250 per unit and whose total variable...
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