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Blanchard Company manufactures a single product that sells for $310 per unit and whose total variable costs are $248 per unit. The company's annual fixed
Blanchard Company manufactures a single product that sells for $310 per unit and whose total variable costs are $248 per unit. The company's annual fixed costs are $640,000. The sales manager predicts that annual sales of the company's product will soon reach 41,000 units and its price will increase to $339 per unit. According to the production manager, the variable costs are expected to increase to $256 per unit but fixed costs will remain $640,000. The income tax rate is 20%. What amounts of pretax and after-tax income can the company expect to earn from these predicted changes
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