Prepare a complete projected income statement in the contribution format for each scenario, in the manner of a flexible budget. Please show work 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). Carolina Manufacturing Company Income Statement For the Year Ended December 31 Sales (45,000 units at $15) $675,000 Less cost of goods sold: Direct materials 135,000 Direct labor 117,450 Manufacturing overhea 147,750 400,200 Gross margin 274,800 Less operating expenses Selling expenses Variable Sales commissions 40,500 Shipping 8,100 Fixed (advertising, salaries) 180,000 228,600 Administrative expenses Variable (billing and other) 2,700 Fixed (salaries and other) 72,000 74,700 Net loss ($28,500) D) The team speculates that the problem might lie in inadequate promotion. They want to know by how much they could increase advertising and still allow the company to earn a target profit of 5% of sales on sales of 60,000 units