Blanchard Company manufactures a single product that sells for $104 per unit and whose total variable costs are $78 per unit. The company's annual fixed costs are $622,000. The sales manager predicts that annual sales of the company's product will soon reach 39,200 units and its price will increase to $192 per unit. According to the production manager, variable costs are expected to increase to $132 per unit, but fixed costs will remain at $622,000. The income tax rate is 35%. 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. BLANCHARD COMPANY Forecasted Contribution Margin Income Statement Units $ per unit Contribution margin $ $

Blanchard Company manufactures a single product that sells for $104 per unit and whose total variable costs are $78 per unit. The company's annual fixed costs are $622,000. The sales manager predicts that annual sales of the company's product will soon reach 39,200 units and its price will increase to $192 per unit. According to the production manager, variable costs are expected to increase to $132 per unit, but fixed costs will remain at $622,000. The income tax rate is 35%. 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. BLANCHARD COMPANY Forecasted Contribution Margin Income Statement Units $ per unit Contribution margin $ $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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