Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Blanchard Company manufactures a single product that sells for $190 per unit and whose total variable costs are $133 per unit. The company's annual fixed
Blanchard Company manufactures a single product that sells for $190 per unit and whose total variable costs are $133 per unit. The company's annual fixed costs are $735,300. (a) Compute the company's contribution margin per unit. Contribution margin per unit $ 199 per unit Less Variable cost per unit (133) per unit Contribution margin 66 per unit (b) Compute the company's contribution margin ratio. Choose Numerator: 1 Choose Denominator: Contribution Margin Ratio Contribution margin ratio 33.2% = = = Contribution margin per unit 1 Selling price per unit $ 661 $ 199 (c) Compute the company's break-even point in units. Choose Numerator: 7 Choose Denominator: Fixed costs Contribution margin per unit $ 735,300 / $ 661 (d) Compute the company's break-even point in dollars of sales. Choose Numerator: 7 Choose Denominator: Fixed costs Contribution margin ratio $ 735,300 7 33% Break-Even Units Break-even units 11,141 units = Break-Even Dollars Break-even dollars 2,214 759 = $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started