Blanchard Company’s sales manager (in Exercise 21-10) predicts that annual sales of the company’s prod¬ uct will soon reach 40,000 units and its price will increase to $200 per unit. According to the production manager, the variable costs are expected to increase to $140 per unit but fixed costs will remain at $562,500. The income tax rate is 20%. What amounts of pretax and after-tax income can the company expect to earn from these predicted changes? {Hint: Prepare a forecasted contribution margin income statement as in Exhibit 21.21.)