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Blanchard Company manufactures a single product that sells for $120 per unit and whose total variable costs are $90 per unit. The companys annual fixed

Blanchard Company manufactures a single product that sells for $120 per unit and whose total variable costs are $90 per unit. The companys annual fixed costs are $432,000.

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

(2) Assume the companys fixed costs increase by $129,000. What amount of sales (in dollars) is needed to break even?

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