Question
Blanchard Company manufactures a single product that sells for $208 per unit and whose total variable costs are $156 per unit. The company targets an
Blanchard Company manufactures a single product that sells for $208 per unit and whose total variable costs are $156 per unit. The company targets an annual after-tax income of $1,040,000. The company is subject to a 20% income tax rate. Assume that fixed costs remain at $806,000.
Pretax income:
(1) Compute the unit sales to earn the target after-tax net income.
Choose Numerator: / Choose Denominator: = Units to achieve target / = Units to achieve target 0
(2) Compute the dollar sales to earn the target after-tax net income.
Choose Numerator: / Choose Denominator: = Dollars to achieve target / = Dollars to achieve target 0
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