Ch 18 Connect Assignmem 9 Bianchand Company manufactures a s

Ch 18 Connect Assignmem 9 Bianchand Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. The company\'s annusl fixed cests ane $562.500 Prepare a contribution mangin income statement for Blenchard Company at the break-even point 2) Assume the company\'s fixed costs increase by $:35000a hat amount of sales On dolilars) is needed to break even?

Solution

Fixed cost =562500+135000 = 697500

BLANCHARD COMPANY
Contribution Margin Income Statement (at Break-Even)
	Amount	Percentage of sales
Sales	$2,250,000	100%
Variable costs	1687500	75%
Contribution margin	562500	25%
Fixed costs	562500
Net income	0