A company reports the following contribution margin income statement for this year. For next year, if the unit sales price is reduced to $42 and advertising is increased by $10,800, sales will increase from 5,200 to 7,200 units. Contribution Margin Income Statement For Year Ended December 31 Sales (5,200 × $46) Variable costs (5,200 x $25) Contribution margin Fixed costs Income 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 $42 and increases advertising costs by $10,800. Contribution Margin Income Statement For Year Ended December 31 $ 239,200 130,000 109, 200 46,800 $ 62,400 Sales Variable costs Contribution margin Fixed costs Income
A company reports the following contribution margin income statement for this year. For next year, if the unit sales price is reduced to $42 and advertising is increased by $10,800, sales will increase from 5,200 to 7,200 units. Contribution Margin Income Statement For Year Ended December 31 Sales (5,200 × $46) Variable costs (5,200 x $25) Contribution margin Fixed costs Income 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 $42 and increases advertising costs by $10,800. Contribution Margin Income Statement For Year Ended December 31 $ 239,200 130,000 109, 200 46,800 $ 62,400 Sales Variable costs Contribution margin Fixed costs Income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![A company reports the following contribution margin income statement for this year. For next year, if the unit sales price is
reduced to $42 and advertising is increased by $10,800, sales will increase from 5,200 to 7,200 units.
Contribution Margin Income Statement
For Year Ended December 31
Sales (5,200 × $46)
Variable costs (5,200 x $25)
Contribution margin
Fixed costs
Income
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 $42
and increases advertising costs by $10,800.
Contribution Margin Income Statement
For Year Ended December 31
$ 239,200
130,000
109, 200
46,800
$ 62,400
Sales
Variable costs
Contribution margin
Fixed costs
Income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F157b4a96-9c1d-4c19-9ffd-ab16eb34c094%2Fe3b31aab-1fa3-401d-acbe-bfe90fb2d326%2Fflbak8b_processed.png&w=3840&q=75)
Transcribed Image Text:A company reports the following contribution margin income statement for this year. For next year, if the unit sales price is
reduced to $42 and advertising is increased by $10,800, sales will increase from 5,200 to 7,200 units.
Contribution Margin Income Statement
For Year Ended December 31
Sales (5,200 × $46)
Variable costs (5,200 x $25)
Contribution margin
Fixed costs
Income
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 $42
and increases advertising costs by $10,800.
Contribution Margin Income Statement
For Year Ended December 31
$ 239,200
130,000
109, 200
46,800
$ 62,400
Sales
Variable costs
Contribution margin
Fixed costs
Income
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