M Inbox ,?Newt; P Americ O gMAV M Inbox m Ch 17 ?Conne -Ch 18 E Ch 18 ? https://

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M Inbox ,?Newt; P Americ O gMAV M Inbox m Ch 17 ?Conne -Ch 18 E Ch 18 ? https://newconnect.mheducation.com now/connecthtml work Saved Exercise 18-13 Forecasted income statement LO C2 Blanchard Company manufactures a single product that sells for $200 per unit and whose total variable costs are $148 per ynit. The company's annual fixed costs are $640,000. The sales manager predicts that annual sales of the company's product will soon reach 41000 units and its price will increase to $210 per unit According to the production manager, variabile costs are expected to increase to $150 per unit but fixed costs will remain at S640 000 The income tax rate is 20%, what amounts of pretax and ater tax ncome can the company expect to earn from these predicted changes? Prepare a forecasted contribution margin income statement Forecasted Contribution Margin Income Statement Contrbution margn Soft3 111 Next > e here to search

Explanation / Answer

FORECASTED CONTRIBUTION MARGIN INCOME STATEMENT UNITS $ PER UNIT TOTAL Sales 41000 210 8610000 Variable Cost 41000 150 6150000 Contribution margin 41000 60 2460000 Less: Fixed cost 640,000 Pre-tax income 1,820,000 Less: Tax @ 20% 364000 After-tax income 1,456,000

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