Blanchard Company manufactures a single product that sells for $225 per unit and

Question

Blanchard Company manufactures a single product that sells for $225 per unit and whose total variable costs are $180 per unit. The company's annual fixed costs are $643,500 (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 contribution margin ratio

c) Break even point in units

d) Compute break even points in dollars in sales

Sales per unit $225 per unit Less Variable cost per unit - $180 per unit Contribution margin per unit $45 per unit

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