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Blanchard Company manufactures a single product that sells for $155 per unit and whose total variable costs are $124 per unit. The company's annual fixed
Blanchard Company manufactures a single product that sells for $155 per unit and whose total variable costs are $124 per unit. The company's annual fixed costs are $480,500. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. Choose Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin ratio (c) Compute the company's break-even point in units. Choose Numerator: Choose Denominator Break-Even Units Break-even units (d) Compute the company's break-even point in dollars of sales. Choose Numerator: Choose Denominator Break-Even Dollars Break-even dollars 1 Blanchard Company manufactures a single product that sells for $145 per unit and whose total variable costs are $87 per unit. The company's annual fixed costs are $638,000. The sales manager predicts that annual sales of the company's product will soon reach 40,800 units and its price will increase to $208 per unit. According to the production manager , variable costs are expected to increase to $148 per unit, but fixed costs will remain at $638,000. The income tax rate is 35%. What amounts of pretax and after-tax income can the company expect to earn from these predicted changes? Prepare a forecasted contribution margin income statement BLANCHARD COMPANY Forecasted Contribution Margin Income Statement Units S per unit Contribution margin $ $
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