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5-a. Refer to the original data. Assume that the company sold 28,500 units last year. The sales manager is convinced that a 20% reduction in

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5-a. Refer to the original data. Assume that the company sold 28,500 units last year. The sales manager is convinced that a 20% reduction in the selling price, combined with a $64,000 increase in advertising expenditures, would cause annual sales in units to increase by 30%. Prepare two contribution format income statements, one showing the results of last year's operations and one showing what the results of operations would be if these changes were made. (Round "Per Unit" answers to 2 decimal places.) KLEIN COMPANY Contribution Margin Income Statement Last Year Proposed units 28,500 units Total Per Unit Total Per Unit Sales 0 0.00 0 0.00 $ 0 $ 0 5-a. Refer to the original data. Assume that the company sold 28,500 units last year. The sales manager is convinced that a 20% reduction in the selling price, combined with a $64,000 increase in advertising expenditures, would cause annual sales in units to increase by 30%. Prepare two contribution format income statements, one showing the results of last year's operations and one showing what the results of operations would be if these changes were made. (Round "Per Unit" answers to 2 decimal places.) KLEIN COMPANY Contribution Margin Income Statement Last Year Proposed units 28,500 units Total Per Unit Total Per Unit Sales 0 0.00 0 0.00 $ 0 $ 0

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