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Sunn Company manufactures a single product that sells for $136 per unit and whose variable costs are $102 per unit. The company's annual fixed
Sunn Company manufactures a single product that sells for $136 per unit and whose variable costs are $102 per unit. The company's annual fixed costs are $626,000. The sales manager predicts that next year's annual sales of the company's product will be 39,600 units at a price of $196 per unit. Variable costs are predicted to increase to $136 per unit, but fixed costs will remain at $626,000. What amount of income can the company expect to earn under these predicted changes? Prepare a contribution margin income statement for the next year. SUNN COMPANY Contribution Margin Income Statement Contribution margin Units $ per unit
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