Solution-What amount of income can the company expect

What amount of income can the company expect

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Question - Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs are $116 per unit. The company's annual fixed costs are $631,000. The sales manager predicts that next year's annual sales of the company's product will be 40,100 units at a price of $201 per unit. Variable costs are predicted to increase to $141 per unit, but fixed costs will remain at $631,000. 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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What amount of income can the company expect

Reference no: EM133119443

Reference no: EM133119443

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