ch 18: question 4 algorithmic exercise

Chapter 18 Algorithmic Exercises Sad Help Save & Ext Submit Check my work 4. Blanchard Company manufactures a single product that sells for $206 per unit and whose total variable costs are $200 per unit. The company's annual fixed costs are $634,000. The sales manager predicts that annual sales of the company's product will soon reach 40,400 units and its price will increase to $212 per unit. According to the production manager, variable costs are expected to decrease to $144 perunt, 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 BLANCHARD COMPANY Forecasted Contribution Margin income Statement Units per unit Salee Variable 212 Tied cost Income before hoome taxes $ income $ 212)