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Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs are $126 per unit. The company's annual fixed
Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs are $126 per unit. The company's annual fixed costs are $636,000. The sales manager predicts that next year's annual sales of the company's product will be 40,600 units at a price of $206 per unit. Variable costs are predicted to increase to $146 per unit, but fixed costs will remain at $636,000. What amount of income can the company expect to earn under these predicted changes? Prepare a contribution margin income statement for the next year. Answer is not complete. SUNN COMPANY Contribution Margin Income Statement Sales Contribution margin Contribution margin Fixed costs Income Units $ per unit EA $ 0 0
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