QS 18-8 (Algo) Contribution margin per unit and break-even units LO P2 Viva sells its waterproof phone case for $85 per unit. Fixed costs total $147,900, and variable costs are $34 per unit. Exercise 18-14 (Algo) Contribution margin income statement LO C2 Sunn Company manufactures a single product that sells for $190 per unit and whose variable costs are $133 per unit. The company's annual fixed costs are $628,000. The sales manager predicts that next year's annual sales of the company's product will be 39,800 units at a price of $198 per unit. Varlable costs are predicted to increase to $138 per unit, but fixed costs will remain at $628,000. What amount of income can the company expect to earn under these predicted changes? Prepare a contribution margin income statement for the next year