Sunn Company manufactures a single product that sells for $160 per unit and whose variable...
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Accounting
Sunn Company manufactures a single product that sells for $160 per unit and whose variable costs are $134 per unit. The companys annual fixed costs are $629,000. The sales manager predicts that next years annual sales of the companys product will be 39,900 units at a price of $199 per unit. Variable costs are predicted to increase to $139 per unit, but fixed costs will remain at $629,000. What amount of income can the company expect to earn under these predicted changes?
Prepare a contribution margin income statement for the next year.