Blanchard Company manufactures a single product that sells for $190 per unit and whose total variable costs are $152 per unit. The company's annual fixed costs are $562,400 (1) Prepare a contribution margin income statement for Blanchard Company at the break-even point BLANCHARD COMPANY Contribution Margin Income Statement (at Break-Even) Percentage of sales Amount 0% S (2) Assume the company's fixed costs increase by $133.000. What amount of sales (in dollars) is needed to break even? Break-Even Point in Dollars Break Even Point in Dollars Choose Denominator Choose Numerator: Break-even point in dollars C Required information The following information applies to the questions displayed below Astro Co. sold 20,400 units of its only product and incurred a $53,368 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018's activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $154,000. The maximum output capacity of the company is 40,000 units per year ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 Sales Variable costs Contribution margin Fixed costs $773,160 618,528 154,632 208,000 $ (53,368) Net loss Required: 1. Compute the break-even point in dollar sales for year 2017. (Round your answers to 2 decimal places.) Contribution Margin Per Unit Current 0.00 Contribution Margin Ratio Contribution Margin Ratio Choose Denominator Choose Numerator: Contribution margin ratio 0 Break-Even Point in Dollar Sales: Break-Even Point in Dollars Choose Denominator Choose Numerator: Break-even point in dollars Required information The following information applies to the questions displayed below] Astro Co. sold 20,400 units of its only product and incurred a $53,368 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018's activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $154,000. The maximum output capacity of the company is 40,000 units per year ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 Sales Variable costs $773,160 618,528 154,632 208,000 Contribution margin Fixed costs Net loss $ (53,368) 2. Compute the predicted break-even point in dollar sales for year 2018 assuming the machine is installed and there is no change in the unit selling price. (Round your answers to 2 decimal places.) Contribution margin per unit Proposed S 0 00 Contribution Margin Ratio Contribution Margin Ratio Choose Denominator: Choose Numerator: Contribution margin ratio 0 Break-even point in dollar sales with new machine: Choose Denominator: Break-Even Point in Dollars Choose Numerator: Break-even point in dollars Required information [The following information applies to the questions displayed below] Astro Co. sold 20,400 units of its only product and incurred a $53,368 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018's activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $154,000. The maximum output capacity of the company is 40,000 units per year ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2017 $ 773,160 618,528 154,632 208,000 $ (53,368) Sales Variable costs Contribution margin Fixed costs Net loss 4. Compute the sales level required in both dollars and units to earn $240,000 of target pretax income in 2018 with the machine installed and no change in unit sales price. (Do not round intermediate calculations. Round your answers to 2 decimal pleces Round "Contribution margin ratio" to nearest whole percentage) Sales level required in dollars Sales dollars required Choose Denominator: Choose Numerator: = Sales dollars required Sales level required in units Sales units required Choose Denominator: Choose Numerator: = Sales units required
