Blanchard Company manufactures a single product that sells for $200 per unit and whose total variable costs are $182 per unit. The companys annual fixed costs are $637,000. The sales manager predicts that annual sales of the companys product will soon reach 40,700 units and its price will increase to $207 per unit. According to the production manager, variable costs are expected to increase to $147 per unit but fixed costs will remain at $637,000. 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
	Units	$ per unit
Contribution margin Fixed costs Income before taxes Income taxes Net Income Sales Variable cost
Contribution margin Fixed costs Income before taxes Income taxes Net Income Sales Variable cost
Contribution margin
Contribution margin Fixed costs Income before taxes Income taxes
Contribution margin Fixed costs Income before taxes Income taxes Net Income Sales			$
Contribution margin Fixed costs Income before taxes Income taxes Net Income Sales Variable cost
Contribution margin Fixed costs Income before taxes Income taxes Net Income Sales Variable cost			$