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Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. The company's annual fixed
Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. The company's annual fixed costs are $562,500. (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 $135,000. What amount of sales (in dollars) is needed to break even? 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) Amount Percentage of sales Sales $ 2,250,000 Variable costs (1,687,500) Contribution margin 0% Fixed costs (562,500) Net income $ 0 562,500 Required 1 Required 2 > Required 1 Required 2 Assume the company's fixed costs increase by $135,000. What amount of sales (in dollars) is needed to break even? Break-Even Point in Dollars Choose Numerator: 1 Choose Denominator: Break-Even Point in Dollars Total fixed costs 1 Contribution margin ratio Break-even point in dollars 0
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