Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable costs are $128 per unit. The company’s annual fixed costs are $464,000.

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

(2) Assume the company’s fixed costs increase by $130,000. What amount of sales (in dollars) is needed to break even?

BLANCHARD COMPANY
Contribution Margin Income Statement (at Break-Even)
	Amount	Percentage of sales
		0%
	$0

Break-Even Point in Dollars
Choose Numerator:	/	Choose Denominator:	=	Break-Even Point in Dollars
	/		=	Break-even point in dollars
				0

Answer rating: 100% (QA)

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