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Sunn Company manufactures a single product that sells for $206 per unit and whose variable costs are $139 per unit. The company's annual fixed costs
Sunn Company manufactures a single product that sells for $206 per unit and whose variable costs are $139 per unit. The company's annual fixed costs are $634,000. The sales manager predicts that next year's annual sales of the company's product will be 40,400 units at a price of $212 per unit. Variable costs are predicted to increase to $144 per unit, but fixed costs will remain at $634,000. 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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