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Blanchard Company manufactures a single product that sells for $280 per unit and whose total variable costs are $224 per unit. The company's annual fixed
Blanchard Company manufactures a single product that sells for $280 per unit and whose total variable costs are $224 per unit. The company's annual fixed costs are $879,200. Management targets an annual pretax income of $1,400,000. Assume that fixed costs remain at $879.200. (1) Compute the unit sales to earn the target income. Choose Numerator: Choose Denominator Units to Achieve Target Units to achieve target (2) Compute the dollar sales to eam the target income. Choose Numerator: Choose Denominator: Dollars to Achieve Target Dollars to achieve target Requlred Information [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (11,189 units at $375 each) Variable costs (11,188 units at $380 each) Contribution margin Fixed costs Pretax income $4,162,590 3,339,809 832,599 669 889 $ 172,500 Assume the company is considering investing in a new machine that will increase its fixed costs by $38.000 per year and decrease its variable costs by $9 per unit. Prepare a forecasted contribution margin income statement for 2020 assuming the company purchases this machine HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 Variable costs Contribution margin Fized costs Income forete Less Should the company purchase the machine
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