Reference no: EM133047208

Problem - Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable costs are $120 per unit, The company's annual fixed costs are $629,000, The sales manager predicts that annual salt-25 0fthe company's product will soon reach 39,900 units and its price will increase to $199 per unit, According to the production manager, variable costs are expected to increase to $139 per unit, but fixed costs will remain at $629,000. The income tax rate is 25%. 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.