Fixed costs | 496400 | |||
Divide by Contribution margin ratio | 25% | =(136-102)/136 | ||
Break-even dollars | 1985600 | |||
1 | ||||
BLANCHARD COMPANY | ||||
Contribution Margin Income Statement (at Break-Even) | ||||
Amount | Percentage of sales | |||
Sales | 1985600 | 100% | ||
Variable costs | 1489200 | 75% | ||
Contribution margin | 496400 | 25% | ||
Fixed costs | 496400 | |||
Net income | 0 | |||
2 | ||||
Break-even point in dollars | ||||
Choose Numerator: | / | Choose Denominator: | = | Break-even point in dollars |
Total fixed costs | / | Contribution margin ratio | = | Break-even point in dollars |
627400 | / | 25% | = | 2509600 |
Blanchard Company manufactures a single product that sells for $136 per unit and whose total variable...
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Blanchard Company manufactures a single product that sells for $120 per unit and whose total variable costs are $90 per unit. The company's annual fixed costs are $432,000. (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 $129,000. What amount of sales (in dollars) is needed to break even? Complete this question by entering your answers in the tabs below....
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