6 3 points Sunn Company manufactures a single product that sells for 104 per unit and whose variable costs are 127 per unit The

Question

6 3 points Sunn Company manufactures a single product that sells for 104 per unit and whose variable costs are 127 per unit The company s annual fixed costs are 622 000 The sales manager predicts that next year s annual sales of the company s product will be 39 200 units at a price of 192 per unit Variable costs are predicted to increase to 132 per unit but fixed costs will remain at 622 000 What amount of income can the company expect to earn under these predicted changes Prepare a contribution margin income statement for the next year Answer is complete but not entirely correct SUNN COMPANY Contribution Margin Income Statement por Sales Variable costs Contribution margin Fixed costs Income Units unit 192 132 132 X 39 200 39 200 39 200 Return to question 7 526 400 5 174 400 2 352 000 622 000 2 974 000

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