Blanchard Company manufactures a single product that sells for $250 per unit and whose total variable costs are $200 per unit. The companys annual fixed costs are $770,000. (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 companys fixed costs increase by $139,000. What amount of sales (in dollars) is needed to break even?

BLANCHARD COMPANY Contribution Margin Income Statement (at Break-Even) Amount Percentage of sales