What amounts of pretax and after-tax income can the company

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Apollo Company manufactures a single product that sells for $175 per unit and whose total variable costs are $132 per unit. The company's annual fixed costs are $635,000. The sales manager predicts that annual sales of the company's product will soon reach 40,500 units and its price will increase to $205 per unit. According to the production manager, the variable costs are expected to increase to $145 per unit but fixed costs will remain $635,000. The income tax rate is 20%.

What amounts of pretax and after-tax income can the company expect to earn from these predicted changes? (Omit the "$" sign in your response.)

Pretax income $
After-tax income $

Reference no: EM13598483

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