1. Based on the following income statement, prepare a pro-form statement for the expected operating income if the company is able to increase sales by 20%.

Contribution format income statement

The Alpine House, Inc. Contribution Format Income Statement
Sales............................................................		$150,000
Variable expenses:
Cost of goods sold ($30,000 + $100,000 $40,000).................	$90,000
Selling expenses ($50 per unit 200 pairs of skis)................	10,000
Administrative expenses ($10 per unit 200 pairs of skis)................	2,000	102,000
Contribution margin........................................		48,000
Fixed expenses:
Selling expenses..........................................	20,000
Administrative expenses................................	20,000	40,000
Net operating income.....................................		$ 8,000