Hi, need help mainly with Part B. I know that advertising will value at $330,000 at some point.

advertising = fixed cost + incurred cost

$180,000 + 150,000 = 330,000

Where does the 150,000 come from? How was it determined? (please show me using formulas and equations.)

On these Excel sheets, you will need to prepare a complete projected income statement in the contribution format for each scenario, in the manner of a flexible budget. The cells will be checked for appropriate formulas, when appropriate. Please highlight the specific answer to the question being posed. Carolina Manufacturing Company has been operating at a loss for several years. A management team has assembled to determine what course of action to take next year to reach profitability. They begin by reviewing the most recent income statement (below). All variable expenses vary with the number of units sold, except tor sales commissions, which are based on a percentage of sales dollars. Variable manufacturing overhead is forty-five cents per unit. The plant has a capacity of 75,000 units per year. In order to facilitate the work of the management team, you are asked to prepare various spreadsheets and specific computations in Excel. A) Reformat the income statement in the contribution format. Include both a Total column and Per Unit column in the statement. B) Prepare two income statements in the contribution format (from Part A) which reflect each of the following independent scenarios: i) The controller would like to reduce the unit selling price by 20%. He believes that this would generate enough sales for the plant to reach capacity. ii) The sales manager would like to increase the selling price by 20%, increase the sales commission to 9% of sales, and increase advertising by $150,000. She believes that this would increase unit sales by one-third