ACCT 212 Chapter 5 Cengage Homework.docx - Connect Managerial Accounting Chapter 5 1 Blanchard Company manufactures a single product that sells for $180

ACCT 212 Chapter 5 Cengage Homework.docx - Connect...

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Connect - Managerial Accounting Chapter 5 1.Blanchard Company manufactures a single product that sells for $180 per unit and whose total variablecosts are $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. 2.Blanchard Company manufactures a single product that sells for $180 per unit and whose total variablecosts are $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.
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(2) Assume the company’s fixed costs increase by $135,000. What amount of sales (in dollars) is neededto break even? 3.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. Management targets an annual pretax income of $1,012,500.(1) Compute the unit sales to earn the target income.
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