Blanchard Company manufactures a single product that sells for $190 per unit and whose total variable costs are $180 per unit. The company's annual fixed costs are $639,000. The sales manager predicts that annual sales of the company's product will soon reach 40,900 units and its price will increase to $209 per unit. According to the production manager, variable costs are expected to increase to $149 per unit, but fixed costs will remain at $639,000. The income tax rate is 40%. What amounts of pretax and after-tax income can the company expect to earnfrom these predicted changes?

Blanchard Company manufactures a single product that sells for $190 per unit and whose total variable costs are $180 per unit. The oompany's annual xed costs are $639,000. The sales manager predicts that annual sales o'i'the company's product will soon reach 40,900 units and its price will increase to $209 per unit. According to the production manager, variable oosts are expected to increase to $149 per unit, but fixed costs will remain at $639,000. The income tax rate is 40%. What amounts of pretax and alter-tax income can the company expect to earn from these predicted changes? Prepare a forecasted contribution margin income statement. _- _