Exercise 05-11 Income reporting and break-even analysis LO
Blanchard Company manufactures a single product that sells for
$250 per unit and whose total variable costs are $200 per unit. The
companys annual fixed costs are $770,000.
(1) Prepare a contribution margin income statement for Blanchard
Company showing sales, variable costs, and fixed costs at the
(2) Assume the companys fixed costs increase by $139,000. What
amount of sales (in dollars) is needed to break even?
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