Exercise 21-12 Computing sales to achieve target income LO C2 Blanchard Company manufactures a single product that sells for $120 per unit and whose total variable costs are $84 per unit. The company's annual fixed costs are $529,200. Management targets an annual pretax income of $900,000. Assume that fixed costs remain at $529,200. Answer is not complete. (1) Compute the unit sales to earn the target income. Choose Numerator: Choose Denominator: Fored costs plus pretax income Contribution margin per $ 120 520.200 - Units to Achieve Target Units to achieve target (2) Compute the dollar sales to earn the target income. Choose Numerator: Choose Denominator: Fixed costs plus pretax income Contribution margin ratio Dollars to Achieve Target Dollars to achieve target Required Information Problem 21-5A Break-even analysis, different cost structures, and income calculations LO C2, A1, P4 The following information applies to the questions displayed below) Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 44,000 units of each product Sales and costs for each product follow Product T $ 774,400 464,640 309,760 187,760 122.ee 39. Product O $ 774,400 154,880 619,520 Sales Variable costs Contribution margin Fixed costs Income before taxes Income taxes (32% rate) 497,520 122. 39. Net Income 82,960 $ 82,960 Exercise 21-12 Computing sales to achieve target income LO C2 Blanchard Company manufactures a single product that sells for $120 per unit and whose total variable costs are $84 per unit. The company's annual fixed costs are $529,200. Management targets an annual pretax income of $900,000. Assume that fixed costs remain at $529,200 Answer is not complete. - (1) Compute the unit sales to earn the target income Choose Numerator 1 Choose Denominator Fixed costs plus pretax income Contribution margin per 120 / 520.200 Units to Achieve Target Units to achieve target - (2) Compute the dollar sales to earn the target income. Choose Numerator: Choose Denominator: Fixed costs plus pretax income Contribution margin ratio- Dollars to Achieve Target Dollars to achieve target