Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 $ $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Differentiate the function. r(z) = 2-8 - 21/2 r'(z) =

Answered: 1 week ago