Blanchard Company manufactures a single product that sells for $155 per unit and

Question

Blanchard Company manufactures a single product that sells for $155 per unit and whose total variable costs are $124 per unit. The company's annual fixed costs are $480,500 (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. Choose Denominator: Choose Numerator: Contribution Margin Ratio Contribution margin ratio (c) Compute the company's break-even point in units Choose Numerator: Choose Denominator: Break-Even Units Break-even units (d) Compute the company's break-even point in dollars of sales Choose Numerator: Choose Denominator: Break-Even Dollars Break-even dollars

Explanation / Answer

(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.

Sales per unit $155 per unit Less: Variable cost per unit $124 per unit Contribution margin $31 per unit

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