Exercise 5-11 Blanchard Company manufactures a single product that sells for $280 per unit and whose total variable costs are $224 per unit. The companys annual fixed costs are $879,200.

(1) Prepare a contribution margin income statement for Blanchard Company at the break-even point.

(2) Assume the companys fixed costs increase by $142,000. What amount of sales (in dollars) is needed to break even?

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