Solution-Prepare a contribution margin income statement

Prepare a contribution margin income statement

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Reference no: EM133093419

Question - Sunn Company manufactures a single product that sells for $184 per unit and whose variable costs are $138 per unit. The company's annual fixed costs are $632 000. The sales manager predicts that next year's annual sales of the company's product will be 40,200 units at a price of $202 per unit. Variable costs are predicted to increase to $142 per unit, but fixed costs will remain at $632,000. What amount of income can the company expect to earn under these predicted changes? Prepare a contribution margin income statement for the next year.

Reference no: EM133093419

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Prepare a contribution margin income statement

Reference no: EM133093419

Reference no: EM133093419

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