PLEASE ASSIST!! THANKS! Blanchard Company manufactures a single product that sel

Question

PLEASE ASSIST!! THANKS!

Blanchard Company manufactures a single product that sells for $200 per unit and whose total variable costs are $160 per unit. The company’s annual fixed costs are $532,000.

(a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. Choose Numerator: / Choose Denominator: = Contribution Margin Ratio / = Contribution margin ratio 0 (c) Compute the company's break-even point in units. Choose Numerator: / Choose Denominator: = Break-Even Units / = Break-even units 0 (d) Compute the company's break-even point in dollars of sales. Choose Numerator: / Choose Denominator: = Break-Even Dollars / = Break-even dollars 0

Explanation / Answer

Answer:

(a) Contribution margin Per Unit = Selling price per unit - Variable cost per unit

= 200 - 160 = $ 40 per unit

(b) Contribution margin ratio = Contribution per unit / Selling Price per unit = 40 / 200 = 20%

(c) Break-even points in units = Fixed Costs / Contribution per unit = 532,000 / 40 = 13,300 units

(d) Break-even point in $ = Fixed Costs / Contribution margin ratio =  532,000 / 20 % = $ 2,660,000

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