Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blanchard Company manufactures a single product that sells for $250 per unit and whose total variable costs are $200 per unit. The company's annual fixed

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Blanchard Company manufactures a single product that sells for $250 per unit and whose total variable costs are $200 per unit. The company's annual fixed costs are $770,000. (1) Prepare a contribution margin income statement for Blanchard Company showing sales, variable costs, and fored costs at the break- even point. (2) Assume the company's fixed costs increase by $139,000. What amount of sales (in dollars) is needed to break even? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution margin income statement for Blanchard Company showing sales, variable costs, and fixed costs at the break-even point. BLANCHARD COMPANY Contribution Margin Income Statement (at Break-Even) Percentage Amount of sales Sales Variable costs Contribution margin Fixed costs Net income Required 2 > Blanchard Company manufactures a single product that sells for $250 per unit and whose total variable costs are $200 per unit. The company's 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 company's fixed costs increase by $139,000. What amount of sales (in dollars) is needed to break even? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume the company's fixed costs increase by $139,000. What amount of sales (in dollars) is needed to break even? Break-Even Point in Dollars Choose Numerator: Total fixed costs Contribution margin ratio Break-Even Point in Dollars + Break-even point in dollars Required 1 22 vr analysis using composite units LO P4 Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $114 and of each door is $264. The variable cost of a window is $69.50 and of a door is $182.00. Fixed costs are $416,000. (Enter your "per unit" values in two decimal places.) (1) Determine the selling price per composite unit. Quantity Windows Doors Selling Price per unit Total per composite unit Variable costs per unit Total per composite unit (2) Determine the variable costs per composite unit. Quantity Windows Doors Contribution margin per composite unit 0.00 Contribution margin (2) Determine the variable costs per composite unit. Quantity Windows Doors Variable costs per unit Total per composite unit Contribution margin per composite unit 0.00 0.00 Contribution margin (3) Determine the break-even point in composite units. Choose Numerator: Choose Denominator: Break Even Units Break even units Unit sales at break-even point (4) Determine the number of units of each product that will be sold at the break-even point. Quantity Number of composite units to break even. Windows Doors Total

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Smart Sexy Auditing Clerk

Authors: Funny Career Quotes

1st Edition

B08RRJ97CP, 979-8588903189

Students also viewed these Accounting questions