Problem 1 (Please use answer sheet included in packet for Problem 1) Blanchard Company manufactures a...

Transcribed Image Text:

Problem 1 (Please use answer sheet included in packet for Problem 1) Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. The company's annual fixed costs are $562,500. (1) Use this information to compute the company's (a) contribution margin, 180-135=45 (b) contribution margin ratio, $45/$180 = 25% (c) break-even point in units, and 10562500/$45 = 12500 P (d) break-even point in dollars of sales f56250 12590 = 2,250,000 3 (2) Prepare a CVP chart for the company (3) Prepare a contribution margin income statement for Blanchard Company showing sales, variable costs, and fixed costs at the break-even point. (4) Assume a targeted income of $1,012,500 and that fixed costs remain at $562,500. Compute the: (a) unit sales to earn the target income of $1,012,500 (b) dollar sales to earn the target income of $1,012,500 Problem 1 (Please use answer sheet included in packet for Problem 1) Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. The company's annual fixed costs are $562,500. (1) Use this information to compute the company's (a) contribution margin, 180-135=45 (b) contribution margin ratio, $45/$180 = 25% (c) break-even point in units, and 10562500/$45 = 12500 P (d) break-even point in dollars of sales f56250 12590 = 2,250,000 3 (2) Prepare a CVP chart for the company (3) Prepare a contribution margin income statement for Blanchard Company showing sales, variable costs, and fixed costs at the break-even point. (4) Assume a targeted income of $1,012,500 and that fixed costs remain at $562,500. Compute the: (a) unit sales to earn the target income of $1,012,500 (b) dollar sales to earn the target income of $1,012,500