ch5 - 1 Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit The companys

ch5 - 1 Blanchard Company manufactures a single product...

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1.Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costsare $135 per unit. The company’s annual fixed costs are $562,500.(a) Compute the company's contribution margin per unit. (b) Compute the company's contribution margin ratio. (c) Compute the company's break-even point in units. (d) Compute the company's break-even point in dollars of sales.
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2.Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costsare $135 per unit. The company’s annual fixed costs are $562,500.(1) Prepare a contribution margin income statement for Blanchard Company at the break-even point. (2) Assume the company’s fixed costs increase by $135,000. What amount of sales (in dollars) is needed tobreak even?
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