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Sunn Company manufactures a single product that sells for $120 per unit and whose variable...

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Accounting

Sunn Company manufactures a single product that sells for $120 per unit and whose variable costs are $132 per unit. The company's annual fixed costs are $627,000. The sales manager predicts that next year's annual sales of the company's product will be 39,700 units at a price of $197 per unit. Variable costs are predicted to increase to $137 per unit, but fixed costs will remain at $627,000. What amount of income can the company expect to earn under these predicted changes?
Prepare a contribution margin income statement for the next year.
\table[[SUNN COMPANY],[,Units,S per unit,],[,,,],[,,,],[,,,],[Contribution margin,,,],[,,,],[,,,]]
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