Blanchard Company manufactures a single product that sells for $184 per unit and whose total variable costs are $138 per unit. The companys annual fixed costs are $699,200.

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

BLANCHARD COMPANY
Contribution Margin Income Statement (at Break-Even)
	Amount	Percentage of sales
Sales
Variable costs
Contribution margin		0%

(2)

Assume the companys fixed costs increase by $137,000. What amount of sales (in dollars) is needed to break even?

Break-Even Point in Dollars
Choose Numerator:	/	Choose Denominator:	=	Break-Even Point in Dollars
	/	Contribution margin ratio	=	Break-even point in dollars