ACCT 212 Chapter 5 Cengage Homework.docx - Connect Managerial Accounting Chapter 5 1 Blanchard Company manufactures a single product that sells for $180
Connect - Managerial Accounting Chapter 51.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.
(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.