Q4

Sunn Company manufactures a single product that sells for $110 per unit and whose variable costs are $125 per unit. The company's annual fixed costs are $620,000. The sales manager predicts that next year's annual sales of the company's product will be 39,000 units at a price of $190 per unit. Variable costs are predicted to increase to $130 per unit, but fixed costs will remain at $620,000. What amount of income can the company expect to earn under these predicted changes? Prepare a contribution margin income statement for the next year