Sunn Company manufactures a single product that sells for $160 per unit and whose variable costs are $130 per unit. The company's annual fixed costs are $625,000. The sales manager predicts that next year's annual sales of the company's product will be 39,500 units at a price of $195 per unit. Variable costs are predicted to increase to $135 per unit, but fixed costs will remain at $625,000. 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 manufactures a single product that sells for $160 per unit and whose variable costs are $130 per unit. The company's annual fixed costs are $625,000. The sales manager predicts that next year's annual sales of the company's product will be 39,500 units at a price of $195 per unit. Variable costs are predicted to increase to $135 per unit, but fixed costs will remain at $625,000. What amount of income can the company expect to earn under these predicted changes? Prepare a contribution margin income statement for the next year