(Solved): Sunn Company manufactures a single product that sells for $200 per unit and whose variable costs ar ...

Sunn Company manufactures a single product that sells for $200 per unit and whose variable costs are $148 per unit. The company's annual fixed costs are $640,000. The sales manager predicts that next year's annual sales of the company's product will be 41,000 units at a price of $210 per unit. Variable costs are predicted to increase to $150 per unit, but fixed costs will remain at $640,000. What amount of income can the company expect to earn under these predicted changes? Prepare a contribution margin income statement for the next year. SUNN COMPANY Contribution Margin Income Statement Units $ per unit Contribution margin