Question: Hi, need help mainly with Part B. I know that advertising will value at $330,000 at some point. advertising = fixed cost + incurred cost

Carolina Manufacturing Compuny has been operating as a loss for several years. A managerment team bas assenbled to deternine what course of action to take next year to reach profitabality. They begia by revicwing the most recent income statenens (below). All variable expenses vary with the mamber of units sold, except for sales comsmissions, which are based en a percentage of sales dollars, Variable marufacturing overhead is forty-five cents per unit. The plant has a capacity of 75,000 units per year. In exder to facilitate the woek of the management icam. you are asked to grepare various spreadshects asd specifie computations in Excel. A) Refoemas the insome statemeet in the contributioe format Include boch a Fotal column and Per Unit colamn in the statement. B) Prepare two incone statements in the contribution format (from Part A) which reflect each of the following independent scenariosi i) The controller would lake to reduce the unit selling price by 20 . He belicves that this would generate enough sales for the plant to ecach capacity. ii) The sales manager would like to increase the selling price by zope, increase the sales comnission to 9% of sales, and increase advertising by $1 so, o00. She believes that this would increase unst sales by one-thied. Carolina Manufacturing Compuny has been operating as a loss for several years. A managerment team bas assenbled to deternine what course of action to take next year to reach profitabality. They begia by revicwing the most recent income statenens (below). All variable expenses vary with the mamber of units sold, except for sales comsmissions, which are based en a percentage of sales dollars, Variable marufacturing overhead is forty-five cents per unit. The plant has a capacity of 75,000 units per year. In exder to facilitate the woek of the management icam. you are asked to grepare various spreadshects asd specifie computations in Excel. A) Refoemas the insome statemeet in the contributioe format Include boch a Fotal column and Per Unit colamn in the statement. B) Prepare two incone statements in the contribution format (from Part A) which reflect each of the following independent scenariosi i) The controller would lake to reduce the unit selling price by 20 . He belicves that this would generate enough sales for the plant to ecach capacity. ii) The sales manager would like to increase the selling price by zope, increase the sales comnission to 9% of sales, and increase advertising by $1 so, o00. She believes that this would increase unst sales by one-thied
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