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Blanchard Company manufactures a single product that sells for $136 per unit and whose total variable costs are $102 per unit. The company?s annual fixed
Blanchard Company manufactures a single product that sells for $136 per unit and whose total variable costs are $102 per unit. The company?s annual fixed costs are $626000. The sales manager predicts that annual sales of the company?s product will soon reach 39,600 units and its price will increase to $196 per unit. According to the production manager, the variable costs are expected to increase to $136 per unit but fixed costs will remain $626,000. The income tax rate is 40%. What amounts of pretax and after-tax income can the company expect to earn from these predicted changes
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