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Harrison Co. expects to sell 220,000 units of its product next year, which would generate total sales of $19,140,000. Management predicts that pretax net income
Harrison Co. expects to sell 220,000 units of its product next year, which would generate total sales of $19,140,000. Management predicts that pretax net income for next year will be $1,270,000 and that the contribution margin per unit will be $23. Complete the below table to calculate the next year's total expected variable costs and fixed costs. HARRISON CO. Forecasted Contribution Margin Income Statement Units $ per unit 220,000 Contribution margin $ 23 Nombre Company management predicts $720,000 of variable costs, $866,000 of fixed costs, and a pretax income of $214,000 in the next period. Management also predicts that the contribution margin per unit will be $15. (1) Compute the total expected dollar sales for next period. Contribution margin Pretax income (2) Compute the number of units expected to be sold next period. Choose Numerator: 1 Choose Denominator: = Units Units
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