Exercise 21-13 Forecasted income statement LO C2 Blanchard Company manufactures a single product that sells for $206 per unit and whose total variable costs are $200 per unit. The companys annual fixed costs are $634,000. The sales manager predicts that annual sales of the companys product will soon reach 40,400 units and its price will increase to $212 per unit. According to the production manager, the variable costs are expected to increase to $144 per unit but fixed costs will remain at $634,000. The income tax rate is 40%. 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.