Blanchard Company management (in Exercise 21-10) targets an annual after-tax income of $ 810,000. The company is subject to a 20% income tax rate. Assume that fixed costs remain at $ 562,500.
In Exercise 21-10, Blanchard Company manufactures a single product that sells for $ 180 per unit and whose total variable costs are $ 135 per unit. The company’s annual fixed costs are $ 562,500.
(1) Unit sales to earn the target after- tax net income
(2) Dollar sales to earn the target after- tax net income.