### Contribution Margin Income Statement Requirements and Break-Even AnalysisBlanchard Company manufactures a single product that sells for $160 per unit and whose total variable costs are $128 per unit. The company's annual fixed costs are $464,000.**Tasks:**1. **Prepare a Contribution Margin Income Statement:** - For Blanchard Company, prepare an income statement that shows sales, variable costs, and fixed costs at the break-even point.2. **Analyze the Impact of Increased Fixed Costs:** - Assume the company’s fixed costs increase by $130,000. Determine the amount of sales (in dollars) needed to break even under this new fixed cost structure.The interactive section below guides you through the required calculations.#### Break-Even Analysis (Interactive Section)The interactive table assists in calculating the break-even point in dollars by allowing the user to input the necessary numerators and denominators according to the Contribution Margin formula.| Break-Even Point in Dollars ||--------------------------------|| **Choose Numerator:** / **Choose Denominator:** = Break-Even Point in Dollars| **Amount:** / **Amount:** = Break-Even point in dollars |1. **Numerator:** Represents total fixed costs (including any increase).2. **Denominator:** Represents the contribution margin per unit (Selling price per unit - Variable cost per unit).To find the break-even point, use the formula:\[ \text{Break-Even Point} = \frac{\text{Total Fixed Costs}}{\text{Contribution Margin Ratio}} \]Where:- **Total Fixed Costs** = Annual fixed costs + Increase in fixed costs- **Contribution Margin Ratio** = $\frac{\text{Selling Price per Unit - Variable Cost per Unit}}{\text{Selling Price per Unit}}$**Contribution Margin Income Statement Example:**1. **Sales:** (Break-even units \* $160 per unit)2. **Variable Costs:** (Break-even units \* $128 per unit)3. **Contribution Margin:** Sales - Variable Costs4. **Fixed Costs:** $464,0005. **Net Income:** Contribution Margin - Fixed Costs = $0 (at break-even point)Use the interactive table to input the updated fixed costs ($464,000 + $130,000) and calculate the new break-even point in dollars, helping visualize how fixed cost changes impact sales requirements. ### Blanchard Company Contribution Margin Income Statement ExerciseBlanchard Company manufactures a single product that sells for $160 per unit and whose total variable costs are $128 per unit. The company's annual fixed costs are $464,000.#### Tasks:1. **Prepare a contribution margin income statement for Blanchard Company showing sales, variable costs, and fixed costs at the break-even point.**2. **Assume the company’s fixed costs increase by $130,000. What amount of sales (in dollars) is needed to break even?**Please complete this exercise using the provided tabs below:### Required 1**Prepare a contribution margin income statement for Blanchard Company showing sales, variable costs, and fixed costs at the break-even point.**#### Contribution Margin Income Statement Template:| BLANCHARD COMPANY | ||-------------------------------------------------------------|------------------------------------------|| Contribution Margin Income Statement (at Break-Even) | Amount | Percentage of Sales ||-------------------------------------------------------------|------------------------------------------|------------------------------------------|| Sales | $XX,XXX | 100% || Less: Variable Costs | $XX,XXX | XX% || Contribution Margin | $XX,XXX | XX% || Less: Fixed Costs | $XXX,XXX | XX% || Net Income | $0 | - |### Required 2**Assume the company’s fixed costs increase by $130,000. What amount of sales (in dollars) is needed to break even?**Use the tabs below to answer the questions. Input your answers accordingly.

Break-even point (units)=Annual fixed costsSelling price-Variable cost per unit

Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable costs are $128 per unit. The company's annual fixed costs are $464,000. (1) Prepare a contribution margin income statement for Blanchard Company showing sales, variable costs, and fixed costs at the break- even point. (2) Assume the company's fixed costs increase by $130,000. What amount of sales (in dollars) is needed to break even? Complete this question by entering your quer

Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable costs are $128 per unit. The company's annual fixed costs are $464,000. (1) Prepare a contribution margin income statement for Blanchard Company showing sales, variable costs, and fixed costs at the break- even point. (2) Assume the company's fixed costs increase by $130,000. What amount of sales (in dollars) is needed to break even? Complete this question by entering your quer

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Check my work Assume that a company makes three products-Product A, Product B, and Product C-and provides the following information with respect to those products: 17 Selling price Variable costs per unit: Direct materials Direct labor Variable overhead Total variable cost per unit Contribution margin per unit Product A Product B Product C $ 70 $ 75 $ 85 16 24 20 40 28 32 2 2 3 58 54 55 $ 12 $ 21 $ 30 The company incurs total fixed costs of $50,000. The maximum demand for each of its products is 600 units. Its direct materia cost is $8.00 per pound. The company has only 3,000 pounds of direct materials available for production. Assuming the company has made optimal use of its 3,000 pounds of direct material, what is the maximum amount per pound the company should be willing to pay for additional direct materials? Multiple Choice О $16.00 $20.00
screenshot attached vo Company manufactures and sells a single product. The company's sales and expenses for last year follow: gwoii
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బంతక Information concerning a product produced by Ender Company appears here: Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating 165 94 $482,800 costs Required Determine the following: a. Contribution margin per unit. b. Number of units that Ender must sell to break even. c. Sales level in units that Ender must reach to earn a profit of $127,800. d. Determine the margin of safety in units, sales dollars, and as a percentage. Complete this question by entering your answers in the tabs below. Req A to C Req D Determine the margin of safety in units, sales dollars, and as a percentage. (Round "Percentage" answer to 1 decimal place (i.e., 0.234 should be entered as 23.4).) Units Sales Percentage Margin of safety < Req A to C
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Information concerning a product produced by Ender Company appears here: Sales price per unit $ 174 Variable cost per unit $ 76 Total annual fixed manufacturing and operating costs $ 656,600 Required Determine the following: Contribution margin per unit. Number of units that Ender must sell to break even. Sales level in units that Ender must reach to earn a profit of $245,000. Determine the margin of safety in units, sales dollars, and as a percentage.
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Contribution Margin Income Statement A contribution margin income statement organizes costs by behavior (variable or fixed), rather than by function (operating, selling, or administrative). The contribution margin is the difference between sales and . Byron Manufacturing has one product that sells for $24.00 per unit. The company estimates fixed costs at $6,000, direct materials at $4.00 per unit, direct labor at $5.00 per unit, and variable overhead costs at $3.00 per unit. Fill in the contribution margin income statement when 730 units are sold: Bryon Manufacturing Contribution Margin Income Statement Sales $______________________ a. Less: variable costs b. Less: fixed costs $______________________ Contribution margin $______________________ a. Less: variable costs b. Less: fixed costs $______________________ Operating income $______________________ Calculate Byron Manufacturing's per unit contribution margin : $___________ The contribution margin ratio is…