Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Felix \& Company reports the following information. Exercise 18-5 (Algo) Measuring costs using high-low method LO P1 (1) Use the high-low method to estimate the fixed and variable components of total costs. (2) Estimate total costs if 3,000 units are produced. Sunn Company manufactures a single product that sells for $160 per unit and whose variable costs are $134 per unit. The company's annual fixed costs are $629,000. The sales manager predicts that next year's annual sales of the company's 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