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Blanchard Company manufactures a single product that sells for $140 per unit and whose total variable costs are $112 per unit. The company's annual fixed
Blanchard Company manufactures a single product that sells for $140 per unit and whose total variable costs are $112 per unit. The company's annual fixed costs are $400,400. Management targets an annual pretax income of $700,000. Assume that fixed costs remain at $400,400. (1) Compute the unit sales to earn the target income. Choose Numerator: Choose Denominator: = = Units to Achieve Target Units to achieve target (2) Compute the dollar sales to earn the target income. Choose Numerator: Choose Denominator: = Dollars to Achieve Target Dollars to achieve target Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable costs are $128 per unit. The company's annual fixed costs are $625,000. The sales manager predicts that annual sales of the company's product will soon reach 39,500 units and its price will increase to $195 per unit. According to the production manager, variable costs are expected to increase to $135 per unit, but fixed costs will remain at $625,000. The income tax rate is 20%. 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 per unit Contribution margin
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