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Harrison Co. expects to sell 220,000 units of its product next year, which would generate total sales of $19,140,000. ManagemNombre Company management predicts $720,000 of variable costs, $866,000 of fixed costs, and a pretax income of $214,000 in th

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HARRISON CO.
Forecasted Contribution Margin Income Statement
Units $ per Unit Total
Sales 220000 $87 $1,91,40,000
-Variable Cost 220000 -$64 -$1,40,80,000
Contribution Margin 220000 $23 $50,60,000
-Fixed Cost -$37,90,000
Pretax Net Income $12,70,000
Total Expected Dollar sales for next period
Sales $18,00,000
-Variable Cost -$7,20,000
Contribution Margin $15 $10,80,000
-Fixed Cost -$8,66,000
Pretax Net Income $2,14,000
No. of units expected to be sold next period
Numerator / Denominator = Units
$10,80,000 / $15 = 72000

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