Exercise 18-13 Forecasted income statement LO C2 Blanchard Company manufactures a single product that sells for $366 per unit and whose total variable costs are $275 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 $405 per unit. According to the production manager, variable costs are expected to increase to $289 per unit but fixed costs will remain at $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? Prepare a forecasted contribution margin income statement. BLANCHARD COMPANY Forecasted Contribution Margin Income Statement $ per Units unit Contribution margin Exercise 18-14 Predicting sales and variable costs using contribution margin LO C2 Bloom Company management predicts that it will incur fixed costs of $269,000 and earn pretax income of $337,900 in the next period. Its expected contribution margin ratio is 51%. Required: 1. Compute the amount of total dollar sales. 2. Compute the amount of total variable costs. Complete this question by entering your answers in the tabs below. Required Required 2 1 Compute the amount of total dollar sales. Dollar Sales Choose Denominator: Choose Numerator: Total Dollar Sales Total dollar sales Required 1 Required 2 > Exercise 18-14 Predicting sales and variable costs using contribution margin LO C2 Bloom Company management predicts that it will incur fixed costs of $269,000 and earn pretax income of $337,900 in the next period. Its expected contribution margin ratio is 51%. Required: 1. Compute the amount of total dollar sales. 2. Compute the amount of total variable costs. Complete this question by entering your answers in the tabs below. Required Required 1 2 Compute the amount of total variable costs. Sales Fixed costs Pretax income Variable costs