Question: TB Problem Qu. 18-198 (Static) Computing and analyzing income from new strategies A company reports the following contribution margin income statement for this year. For

 TB Problem Qu. 18-198 (Static) Computing and analyzing income from new

TB Problem Qu. 18-198 (Static) Computing and analyzing income from new strategies A company reports the following contribution margin income statement for this year. For next year, if the unit sales price is reduced to $30 and advertising is increased by $10,000, sales will increase from 4,000 to 6,000 units. Contribution Margin Income Statement For Year Ended December 31 Sales (4,000 x $34) $ 136, 000 Variable costs (4,000 x $14) 56, 000 Contribution margin 80, 000 Fixed costs 36,090 Income $ 44, 000 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 $30 and increases advertising costs by $10,000. Contribution Margin Income Statement For Year Ended December 31 Sales Variable costs Contribution margin Fixed costs ncome $

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