Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable costs are $120 per unit. The companys annual fixed costs are $596,000. Management targets an annual pretax income of $1,000,000. Assume that fixed costs remain at $596,000. 
Exercise 05-12 Computing sales to achieve target income LO C2 Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable costs are $120 per unit. The company's annual fixed costs are $596,000. Management targets an annual pretax income of $1,000,000. Assume that fixed costs remain at $596,000. (1) Compute the unit sales to earn the target income. Choose Numerator: 1 Choose Denominator: 1 39,900 / Units to Achieve Target Units to achieve target 0 $ (2) Compute the dollar sales to earn the target income. Choose Numerator: 1 Choose Denominator: = Dollars to Achieve Target Dollars to achieve target 11 0 Exercise 05-12 Computing sales to achieve target income LO C2 Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable costs are $120 per unit. The company's annual fixed costs are $596,000. Management targets an annual pretax income of $1,000,000. Assume that fixed costs remain at $596,000. (1) Compute the unit sales to earn the target income. Choose Numerator: 1 Choose Denominator: 1 = Units to Achieve Target Units to achieve target 0 Contribution margin per unit Contribution margin ratio Fixed costs Fixed costs per unit Fixed costs plus after tax income rget income. Choose Denominator: Dollars to Achieve Target Dollars to achieve target 0 Exercise 05-12 Computing sales to achieve target income LO C2 Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable costs are $120 per unit. The company's annual fixed costs are $596,000. Management targets an annual pretax income of $1,000,000. Assume that fixed costs remain at $596,000. (1) Compute the unit sales to earn the target income. Choose Numerator: Choose Denominator: 1 Units to Achieve Target Units to achieve target 20000 = Fixed costs per unit Fixed costs plus after tax income rget income. Fixed costs plus pretax income Choose Denominator: Selling price per unit Variable cost per unit Dollars to Achieve Target Dollars to achieve target 0
