Exercise 18-11 Income reporting and break-even analysis LO P2 Blanchard Company manufactures a single product that sells for $168 per unit and whose total variable costs are $126 per unit. The company's annual fixed costs are $630,000. (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 Amount of sales (2) Assume the company's fixed costs increase by $135,000. What amount of sales (in dollars) is needed to break even? Break-Even Point in Dollars Choose Denominator: Choose Numerator: Break-Even Point in Dollars Break-even point in dollars 1 Exercise 18-12 Computing sales to achieve target income LO C2 Blanchard Company manufactures a single product that sells for $104 per unit and whose total variable costs are $78 per unit. The company's annual fixed costs are $369,200. Management targets an annual pretax income of $650,000. Assume that fixed costs remain at $369,200. (1) Compute the unit sales to earn the target income. Choose Choose Numerator: Denominator: Units to Achieve Target Units to achieve target (2) Compute the dollar sales to earn the target income. Choose Choose Numerator: Denominator: Dollars to Achieve Target Dollars to achieve target =