Blanchard Company manufactures a single product that sells for $446 per unit and whose total variable costs are $335 per unit. The companys annual fixed costs are $626,000. The sales manager predicts that annual sales of the companys product will soon reach 39,600 units and its price will increase to $493 per unit. According to the production manager, variable costs are expected to increase to $353 per unit but fixed costs will remain at $626,000. The income tax rate is 20%. What amounts of pretax and after-tax income can the company expect to earn from these predicted changes? Prepare a forecasted contribution margin income statement.

Blanchard Company manufactures a single product that sells for $446 per unit and whose total variable costs are $335 per unit. The company's annual fixed costs are $626,000. The sales manager predicts that annual sales of the company's product will soon reach 39,600 units and its price will increase to $493 per unit. According to the production manager, variable costs are expected to increase to $353 per unit but fixed costs will remain at $626,000. The income tax rate is 20%. What amounts of pretax and after-tax income can the company expect to earn from these predicted changes? Prepare a forecasted contribution margin income statement. BLANCHARD COMPANY Forecasted Contribution Margin Income Statement Units $ per unit Contribution margin $ 0