Exercise 21-12 Computing sales to achieve target income LO C2

Blanchard Company manufactures a single product that sells for $145 per unit and whose total variable costs are $87 per unit. The companys annual fixed costs are $916,400. Management targets an annual pretax income of $1,450,000. Assume that fixed costs remain at $916,400.

(1) Compute the unit sales to earn the target income. Choose Denominator: Units to Achieve Target Choose Numerator: = Fixed costs plus after tax income Contribution margin per unUnits to achieve target 58 18,300 units 1,061,400$ (2) Compute the dollar sales to earn the target income. Choose Numerator: Choose Denominator: Dollars to Achieve Target Dollars to achieve target