Exerclse 18-14 (Algo) Contrlbution margln Income statement LO C2 Sunn Company manufactures a single product that sells for $190 per unit and whose varlable costs are $133 per unlt. The company's annual fixed costs are $628,000. The sales manager predicts that next year's annual sales of the company's product will be 39,800 units at a price of $198 per unlt. Varlable costs are predicted to increase to $138 per unlt, but fixed costs will remaln at $628,000. What amount of income can the company expect to earn under these predicted changes? Prepare a contrlbution margin Income statement for the next year