3.

Blanchard Company manufactures a single product that sells for $240 per unit and whose total variable costs are $180 per unit. The companys annual fixed costs are $954,000.

a)

(1)	Prepare a contribution margin income statement for Blanchard Company at the break-even point

b)

(2)	Assume the companys fixed costs increase by $144,000. What amount of sales (in dollars) is needed to break even?