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The following information is available for a company's maintenance cost over the last seven months. Month June July August September October November December Units Produced
The following information is available for a company's maintenance cost over the last seven months. Month June July August September October November December Units Produced 110 170 130 160 220 250 70 Maintenance Cost $ 5,050 6,850 5,650 6,550 8, 350 9,250 3,850 Using the high-low method, estimate both the fixed and variable components of its maintenance cost. High-Low method - Calculation of variable cost per maintenance hour Total cost at the high point Variable costs at the high point: Volume at the high point: Variable cost per unit produced 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 produced Total variable costs at the low point Total fixed costs Blanchard Company manufactures a single product that sells for $155 per unit and whose total variable costs are $124 per unit. The company's annual fixed costs are $480,500. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. Choose Numerator: Choose Denominator: Contribution Margin Ratio = Contribution margin ratio (c) Compute the company's break-even point in units. Choose Numerator: Choose Denominator: Break-Even Units / = Break-even units (d) Compute the company's break-even point in dollars of sales. Choose Numerator: Choose Denominator: Break-Even Dollars / Break-even dollars 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. (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 $136,000. 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 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. (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 $136,000. 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 $136,000. 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
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