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Question - Blanchard Company manufactures a single product that sells for $240 per unit and whose total variable costs are $180 per unit. The company's annual fixed costs are $954,000.
(1) Prepare a contribution margin income statement for Blanchard Company at the break-even point
(2) Assume the company's fixed costs increase by $144,000. What amount of sales (in dollars) is needed to break even?
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It is January 2nd and senior management of Chester meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing $10,000,000 in bonds.
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