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Problem 4 : Sunn Company manufactures a single product that sells for $ 1 8 0 per unit and whose variable costs are $ 1
Problem : Sunn Company manufactures a single product that sells for $ per unit and whose variable costs are $ per unit. The company's annual fixed costs are $ The sales manager predicts that next year's annual sales of the company's product will be units at a price of $ per unit. Variable costs are predicted to increase to $ per unit, but fixed costs will remain at $ What amount of income can the company expect to earn under these predicted changes? Prepare a contribution margin income statement for next year, For Year Ended December to illustrate your answer. Second, calculate the contribution margin ratio per unit. table
Problem : Sunn Company manufactures a single product that sells for $ per unit and whose variable costs are $ per unit. The company's annual fixed costs are $ The sales manager predicts that next year's annual sales of the company's product will be units at a price of $ per unit. Variable costs are predicted to increase to $ per unit, but fixed costs will remain at $ What amount of income can the company expect to earn under these predicted changes? Prepare a contribution margin income statement for next year, For Year Ended December to illustrate your answer. Second, calculate the contribution margin ratio per unit.
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