Prepare a contribution margin income statement for ohio Company at the break-even point.
2.Assume the companyâ€™s fixed costs increase by $135,000. What amount of sales (in dollars) is needed to break even?
3. Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable costs are $128 per unit. The company targets an annual after-tax income of $640,000. The company is subject to a 20% income tax rate. Assume that fixed costs remain at $464,000.
Ohio Company management predicts $570,000 of variable costs, $870,000 of fixed costs, and a pretax income of $369,500 in the next period. Management also predicts that the contribution margin per unit will be $67.