Brahma Industries sells vinyl replacement windows to home improvement retailers nationwide. The national sales manager believes that if they invest an additional $25,000 in advertising, they would increase sales volume by 10,000 units. Prepare a forecasted contribution margin income statement for Brahma if they incur the additional advertising costs, using this information: Sales (6,500 units at $115) $747,500 Variable costs (6,500 units at $69) 448,500 Contribution margin 299,000 Fixed costs 19,500 Net income (loss) 279,500 The following names are to be considered when completing this problem: Operating Income Variable Costs Sales Fixed Costs per Unit Selling Price per Unit Variable Cost per Unit Contribution Margin Fixed Costs Operating Loss Prepare a forecasted contribution margin income statement for Brahma if they incur the additional advertising costs: Brahma Industries Contribution Margin Income Statement
5. Brahma Industries sells vinyl replacement windows to home improvement retailers nationwide. The national sales manager believes that if they invest an additional $25,000 in advertising, they would increase sales volume by 10,000 units. Prepare a
Sales (6,500 units at $115) $747,500
Variable costs (6,500 units at $69) 448,500
Contribution margin 299,000
Fixed costs 19,500
Net income (loss) 279,500
The following names are to be considered when completing this problem:
| Operating Income | Variable Costs |
Sales |
| Fixed Costs per Unit | Selling Price per Unit |
Variable Cost per Unit |
| Contribution Margin | Fixed Costs |
Operating Loss |
Prepare a forecasted contribution margin income statement for Brahma if they incur the additional advertising costs:
Brahma Industries
Contribution Margin Income Statement
Projected
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