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Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $126 per unit. The company's annual fixed
Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $126 per unit. The company's annual fixed costs are $842,400. Management targets an annual pretax income of $1.350.000. Assume that fixed costs remain at $842,400. (1) Compute the unit sales to earn the target income. Choose Numerator: 1 Choose Denominator: Fixed costs plus pretax income Contribution margin per unit = Units to Achieve Target Units to achieve target 1 II (2) Compute the dollar sales to earn the target income. Choose Numerator: 1 Choose Denominator: Fixed costs plus pretax income Contribution margin ratio = Dollars to Achieve Target Dollars to achieve target
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