Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs are $135 per unit. The companys annual fixed costs are $562,500.

Sunn Company manufactures a single product that sells for $200 per unit and whose variable costs are $142 per unit. The company's annual fixed costs are $637,000. The sales manager predicts that next year's annual sales of the company's product will be 40,700 units at a price of $207 per unit. Variable costs are predicted to increase to $147 per unit, but fixed costs will remain at $637,000. What amount of income can the company expect to earn under these predicted changes? Prepare a contribution margin income statement for the next year