Question & Answer: Blanchard Company manufactures a single product that sells for $310 per unit and whose total variable costs are $248 per unit. T…..

Blanchard Company manufactures a single product that sells for $310 per unit and whose total variable costs are $248 per unit. The company’s annual fixed costs are $992,000. 16,000 units were sold.

(1)

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

(2)	Assume the company’s fixed costs increase by $145,000. What amount of sales (in dollars) is needed to break even?

Expert Answer

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