Period 1 2 3 4 5 Units Produced 0 490 890 1,290 1,690 Total Costs $ 2,590 3,190 3,790 4,390 4,990 Period 6 7 8 9 10 Units Produced 2,090 2,490 2,890 3,290 3,690 Total Costs $5,590 6,190 6,790 7,390 9,232 Estimate total costs if 3,090 units are produced. Complete the below table to calculate the fixed cost and variable cost of sales by using the high-low method. 0 High-Low method - Calculation of variable cost per unit Change in cost Cost at high point minus cost at low point Change in volume Volume at high point minus volume at low point High-Low method - Calculation of fixed costs Total cost at the high point Variable costs at the high point: Volume at the high point: Variable cost per unit Total variable costs at the high point Total fixed costs Total cost at the low point Variable costs at the low point: Volume at the low point: Variable cost per unit Total variable costs at the low point Total fixed costs Estimated total cost III A jeans maker is designing a new line of jeans called Slims. The jeans will sell for $320 per pair and cost $220.80 per pair in variable costs to make. (Round your answers to 2 decimal places.) (1) Compute the contribution margin per pair. Sales Variable cost Contribution margin (2) Compute the contribution margin ratio. Choose Numerator: 1 Choose Denominator: Contribution margin per unit / Selling price per unit Contribution Margin Ratio Contribution margin ratio 0 Blanchard Company manufactures a single product that sells for $185 per unit and whose total variable costs are $148 per unit. The company's annual fixed costs are $469,900. (a) Compute the company's contribution margin per unit. Sales per unit Variable cost per unit Contribution margin (b) Compute the company's contribution margin ratio. Choose Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin per unit 1 Selling price per unit Contribution margin ratio 0 (c) Compute the company's break-even point in units. Choose Numerator: 1 Choose Denominator: Fixed costs / Contribution margin per unit Break-Even Units = Break-even units (d) Compute the company's break-even point in dollars of sales. Choose Numerator: Choose Denominator: Fixed costs 1 Contribution margin ratio Break-Even Dollars = Break-even dollars 0 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 Denominator: Choose Numerator: Total fixed costs $ Break-Even Point in Dollars Break-even point in dollars / Contribution margin ratio = 909,000 / 0 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 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 0% Fixed costs Net income $ 0 Blanchard Company manufactures a single product that sells for $220 per unit and whose total variable costs are $176 per unit. The company's annual fixed costs are $664,400. Management targets an annual pretax income of $1,100,000. Assume that fixed costs remain at $664,400. (1) Compute the unit sales to earn the target income. Choose Numerator: Choose Denominator: = Units to Achieve Target Units to achieve target Fixed costs plus pretax income Contribution margin per unit = 0 (2) Compute the dollar sales to earn the target income. Choose Numerator: Choose Denominator: Fixed costs plus pretax income 1 Contribution margin ratio Dollars to Achieve Target Dollars to achieve target 0 Harrison Co. expects to sell 240,000 units of its product next year, which would generate total sales of $21,360,000. Management predicts that pretax net income for next year will be $1,290,000 and that the contribution margin per unit will be $21. Complete the below table to calculate the next year's total expected variable costs and fixed costs. HARRISON CO. Forecasted Contribution Margin Income Statement Units $ per unit Sales 240,000 Variable costs Less: Contribution margin $ 21 Less: Fixed costs Income before taxes Required information [The following information applies to the questions displayed below.) Hudson Co. reports the contribution margin income statement for 2019. HUDSON Co. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,200 units at $225 each) Variable costs (10,200 units at $180 each) Contribution margin Fixed costs Pretax income $2,295,000 1,836,000 459,000 360,000 $ 99,000 1. Compute Hudson Co.'s break-even point in units. 2. Compute Hudson Co.'s break-even point in sales dollars. units 1 2. Break-even point Break-even point Required information (The following information applies to the questions displayed below.) Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,200 units at $225 each) Variable costs (10,200 units at $180 each) Contribution margin Fixed costs Pretax income $2,295,000 1,836,000 459,000 360,000 $ 99,000 1. Assume Hudson Co. has a target pretax income of $168,000 for 2020. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target pretax income for 2020, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.) 1. Amount of sales 2. Margin of safety %