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Blanchard company manufatures a single product for $180 Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs
Blanchard company manufatures a single product for $180
Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $126 per unit. The company's annual fixed costs are $636,000. The sales manager predicts that annual sales of the company's product will soon reach 40,600 units and its price will increase to $206 per unit. According to the production manager variable costs are expected to increase to S146 per unit but fixed costs will remain at $636,000 The income tax rate is 25%. 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 s per unit Contribution margin Step by Step Solution
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