Reference no: EM133072362

Question - Sunn Company manufactures a single product that sells for $190 per unit and whose variable costs are $150 per unit. The company's annual fixed costs are $635,000. The sales manager predicts that next year's annual sales of the company's product will be 40,500 units at a price of $205 per unit. Variable costs are predicted to increase to $145 per unit, but fixed costs will remain at $635,000. What amount of income can the company expect to earn under these predicted changes? Prepare a contribution margin income statement for the next year.