18-2

Cooper Company expects to sell 190,000 units of its product next year, which would generate total sales of $15,960,000. Management predicts that pretax net income for next year will be $1,240,000 and that the contribution margin per unit will be $26. Complete the below table to calculate the next years total expected variable costs and fixed costs.

COOPER COMPANY Forecasted Contribution Margin Income Statement Unitsper unit 190,000 Contribution margin 26