Blanchard Company manufactures a single product that sells for $566 per unit and whose total variable costs are $425 per unit. The company's annual fixed costs are $620,000. The sales manager predicts that annual sales of the company's product will soon reach 39,000 units and its price will increase to $625 per unit. According to the production manager, variable costs are expected to increase to $449 per unit but fixed costs will remain at $620,000. 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 11