Refer to the information in Exercise 21-16. The marketing manager believes that increasing advertising costs by $81,000 in 2020 will increase the company’s sales volume to 11,000 units. Prepare a forecasted contribution margin income statement for 2020 assuming the company incurs the additional advertising costs.

Data from Exercise 21-16

Hudson Co. reports the contribution margin income statement for 2019 below. 

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Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,600 units at $225 each)..... $2,160,000 Variable costs (9,600 units at $180 each). 1,728,000 Contribution margin .... 432,000 Fixed costs 324,000 $ 108,000 Pretax income..