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Exercise 18-9 Contribution margin and break-even LO P2 10 Blanchard Company manufactures a single product that sells for $185

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Ans:

(a)

Selling price per unit $ 185
Less: variable cost per unit $ -148
Contribution per unit 37

(b)

Choose numerator Choose Denominator Contribution margin ratio
Contribution per unit Selling price per unit
$ 37 $ 185 20%

(c)

Choose numerator Choose Denominator Break even units
Annual fixed cost contribution per unit
$ 469900 $ 37 12700

(d)

Choose numerator Choose Denominator Break even Dollars
Annual fixed cost Contribution margin
$ 469900 20% $ 2,349,500
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