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. If the company's fixed costs increase by $135,000, what amount of sales (in dollars) is needed to break even? 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. Management targets an annual pretax income of $1,012,500. Assume that fixed costs remain at $562,500. Compute the (1) unit sales to earn the target income and (2) dollar sales to earn the target income