Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Blanchard Company manufactures a single product that sells for $280 per unit and whose total variable costs are $224 per unit. The company's annual fixed costs are $879,200. Management targets an annual pretax income of $1,400,000. Assume that fixed costs remain at $879,200.
A) Break-even point= (fixed costs + profit)/ contribution margin
Break-even point= (879,200 + 1,400,000)/(280 - 224)= 40,700 units
B) Break-even point (dollars)= (fixed costs + profit)/ contribution margin ratio
Break-even point (dollars)= 2,279,200/ (56/280)= $11,396,000