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Chec Blanchard Company manufactures a single product that sells for $220 per unit and whose total variable costs are $176 per
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Answer #1
BREAK EVEN POINT = FIXED COST / CONTRIBUTION MARGIN
664400 / (220 - 176)
15100 UNITS
(1) AMOUNT PERCENTAGE OF SALES
SALES 3322000 100%
LESS VARIABLE COST 2657600 80%
CONTRIBUTION MARGIN 664400 20%
LESS FIXED COST 664400
NET PROFIT 0
(2) NUMERATOR DENOMINATOR BREAK EVEN IN DOLLARS
FIXED COST CONTRIBUTION MARGIN
(664400 + 136000) 20%
800400 20% $ 4002000
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