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Sunn Company manufactures a single product that sells for $160 per unit and whose variable costs are $134 annual fixed costs are $629,000. The sales
Sunn Company manufactures a single product that sells for $160 per unit and whose variable costs are $134 annual fixed costs are $629,000. The sales manager predicts that next year's annual sales of the company's units at a price of $199 per unit. Variable costs are predicted to increase to $139 per unit, but fixed costs will 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 $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
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