Sunn Company manufactures a single product that sells for $$145$ per unit and whose variable costs are $$143$ per unit. The company's

annual fixed costs are $$638,000.$ The sales manager predicts that next year's annual sales of the company's product will be $40,800$

units at a price of $$208$ per unit. Variable costs are predicted to increase to $$148$ per unit, but fixed costs will remain at $$638,000.$ What

amount of income can the company expect to earn under these predicted changes?

Prepare a contribution margin income statement for the next year.