Blanchard Company manufactures a single product that sells for $ 180 per unit and whose total variable

Question:

Blanchard Company manufactures a single product that sells for $ 180 per unit and whose total variable costs are $ 135 per unit. The company’s annual fixed costs are $ 562,500.
(1) Use this information to compute the company’s
(a) ,
(b) ratio,
(c) Break-even point in units,
(d) Break-even point in dollars of sales.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...