Blanchard Company manufactures a single product that sells for $190 per unit and whose total variable costs are $152 per unit. The companys annual fixed costs are $628,000. The sales manager predicts that annual sales of the companys product will soon reach 39,800 units and its price will increase to $198 per unit. According to the production manager, variable costs are expected to decrease to $138 per unit, but fixed costs will remain at $628,000. The income tax rate is 30%. 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 manufactures a single product that sells for $190 per unit and whose total variable costs are $152 per unit. The company's annual fixed costs are $628.000. The sales manager predicts that annual sales of the company's product will soon reach 39.800 units and its price will increase to $198 per unit. According to the production manager, variable costs are expected to decrease to $138 per unit, but fixed costs will remain at $628,000. The income tax rate is 30%. 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 S per unit Units Contribution margin 0 S 0 S 0