87 A company reports the following contribution margin income statement for this year. For next year,...

Transcribed Image Text:

87 A company reports the following contribution margin income statement for this year. For next year, if the unit sales price is reduced to $42 and advertising is increased by $10,800, sales will increase from 5,200 to 7,200 units. Contribution Margin Income Statement For Year Ended December 31 Sales (5,200 x $46) Variable costs (5,200 x $25) Contribution margin Fixed costs Income $ 239,200 130,000 109,200 46,800 $ 62,400 eer FIL 18 cre -0.. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution margin income statement for next year assuming the company lowers the sales price per unit to $42 and increases advertising costs by $10,800. Sales Contribution Margin Income Statement For Year Ended December 31 Variable costs Contribution margin Fixed costs Income Next 87 A company reports the following contribution margin income statement for this year. For next year, if the unit sales price is reduced to $42 and advertising is increased by $10,800, sales will increase from 5,200 to 7,200 units. Contribution Margin Income Statement For Year Ended December 31 Sales (5,200 x $46) Variable costs (5,200 x $25) Contribution margin Fixed costs Income $ 239,200 130,000 109,200 46,800 $ 62,400 eer FIL 18 cre -0.. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution margin income statement for next year assuming the company lowers the sales price per unit to $42 and increases advertising costs by $10,800. Sales Contribution Margin Income Statement For Year Ended December 31 Variable costs Contribution margin Fixed costs Income Next