Exercise 05-11 Income reporting and break-even analysis LO P2

Blanchard Company manufactures a single product that sells for $240 per unit and whose total variable costs are $192 per unit. The companys annual fixed costs are $734,400. (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 $138,000. 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)
	Amount	Percentage of sales

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2

Assume the companys fixed costs increase by $138,000. 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
	/		=	Break-even point in dollars