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Why is this wrong? Am I missing anything? Sunn Company manufactures a single product that sells for $200 per unit and whose variable costs are
Why is this wrong? Am I missing anything?
Sunn Company manufactures a single product that sells for $200 per unit and whose variable costs are $182 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. Answer is not complete. SUNN COMPANY Contribution Margin Income Statement Units $ per unit 40,700 Sales Income Contribution margin 0 Variable costs 541,500 x Income $ 541,500Step by Step Solution
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