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Exercise 21-13 Forecasted income statement LO C2 Blanchard Company manufactures a single product that sells for $190 per unilt and whose total varlable costs are

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Exercise 21-13 Forecasted income statement LO C2 Blanchard Company manufactures a single product that sells for $190 per unilt and whose total varlable costs are $180 per unit. The company's annual fixed costs are $639,000. 40,900 units and its price will Increase to $209 per unit. According to the production manager, variable costs are expected to Increase to $149 per unit but fixed costs wil remain at $639000 The income tax rate is 40%, what amounts o pretax and a er ta come can the company expect to earn from these predicted changes? The sales manager predicts that annual sales of the company's product will soon reach Prepare a forecasted contribution margin income statement Forecasted Contribution Margin Income Statement Contribution margin 20 888 3 5 8

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