Question

Chapter 18 Homework, Part 1 Help Save & Exit Submit Check my work Blanchard Company manufactures a single product that sells for $185 per unit and whose total variable costs are $148 per unit. The company's annual fixed costs are $469,900. points (a) Compute the company's contribution margin per unit eBook Hint Contribution margin (b) Compute the company's contribution margin ratio Choose Numerator: 1 Choose Denominator: Print Contribution Margin Ratio References Contribution margin ratio (c) Compute the company's break-even point in units. Choose Numerator: Choose Denominator: Break-Even Units Break-even units (d) Compute the company's break-even point in dollars of sales. Choose Numerator: I Choose Denominator: = Break-Even Dollars Break-even dollars
I need help with the explanation and solution with the whole question.

Answer 1

Solution

(a) Computation of Company's Contribution margin per unit
	Sales price per unit		$      185.00
	Variable cost per unit		$      148.00
	Contribution margin		$         37.00
(b) Compute the Companies contribution margin ratio
	Numerator	/	Denominator	Contribution margin ratio
	Contribution margin per unit	/	Sales price per unit	Contribution margin ratio
	$               37.00	/	$      185.00	20%
(C ) Compute The companies breakeven point in units
	Numerator	/	Denominator	Breakeven in units
	Fixed costs	/	Contribution margin per unit	Breakeven in units
	$   4,69,900.00	/	$         37.00	12700
(d) Compute Breakeven point in sales dollars
	Numerator	/	Denominator	Breakeven in Dollars
	Fixed costs	/	Contribution margin ratio	Breakeven in Dollars
	$   4,69,900.00	/	20%	$ 23,49,500.00