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Blanchard Company manufactures a single product that sells for $120 per unit and whose total variable costs are $84 per unit. The company's annual fixed
Blanchard Company manufactures a single product that sells for $120 per unit and whose total variable costs are $84 per unit. The company's annual fixed costs are $627,000. The sales manager predicts that annual sales of the company's product will soon reach 39700 units and its price will increase to $197 per unit. According to the production manager variable costs are expected to increase to $137 per unit but fixed costs will remain at $627,000. The income tax rate is 35% What amounts of pretax and after tax income can the company expect to earn from these predicted changes? Prepare a forecasted contribution margin income statement. BLANCHARD COMPANY Forecasted Contribution Margin Income Statement Units Sper unit Contribution margin
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