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Blanchard Company manufactures a single product that sells for $250 per unit and whose total variable costs are $200 per unit. The company's annual fixed
Blanchard Company manufactures a single product that sells for $250 per unit and whose total variable costs are $200 per unit. The company's annual fixed costs are $770,000. Management targets an annual pretax income of $1,250,000. Assume that fixed costs remain at $770,000. Answer is complete but not entirely correct. (1) Compute the unit sales to earn the target income. Choose Numerator: Choose Denominator: - Units to Achieve Target al Fixed costs plus pretax income ! Contribution margin per Units to achieve target 1,512,4001 38 = 39,800 units unit (2) Compute the dollar sales to earn the target income. Choose Numerator: Choose Denominator: Fixed costs plus pretax income 1 Contribution margin ratio- 1,512,4001 20% Dollars to Achieve Target Dollars to achieve target 7,562,000 = $ 0 9 9 8 O Q v A O W
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