4 Exercise 05-11 Income reporting and break-even analysis LO P2 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. 14.28 points (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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution margin income statement for Blanchard Company showing sales, variable costs, and fixed costs at the break-even point. BLANCHARD COMPANY Contribution Margin Income Statement (at Break-Even) Percentage Amount of sales Sales 2,988,500 X 100% Variable costs 2,390,800 x 20% X Contribution margin 597,700 X 80% Fixed costs 432,000 Net income $ 165,700 4 Exercise 05-11 Income reporting and break-even analysis LO P2 14.28 points 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume the company's fixed costs increase by $129,000. What amount of sales (in dollars) is needed to break even? Break-Even Point in Dollars Choose Numerator: Total fixed costs Choose Denominator: Contribution margin ratio 30% X = Break-Even Point in Dollars Break-even point in dollars 1,870,000 561,000 $