Prepare a contribution margin income statement

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Refer to Exercise 21-10. In 21 10, Blanchard Company manufactures a single product that sells for $ 180 per unit and whose total variable costs are $ 135 per unit. The company's annual fixed costs are $ 562,500. 

(1) Prepare a contribution margin income statement for Blanchard Company showing sales, variable costs, and fixed costs at the break even point. 

(2) If the company's fixed costs increase by $ 135,000, what amount of sales (in dollars) is needed to break even? Explain.

Reference no: EM13909368

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