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Brahma Industries sells vinyl replacement windows to home improvement retailers nationwide. The national sales manager believes that if they invest an additional $26,000 in advertising,
Brahma Industries sells vinyl replacement windows to home improvement retailers nationwide. The national sales manager believes that if they invest an additional $26,000 in advertising, they would increase sales volume by 11,000 units.
Sales (6,400 units at $115) | $736,000 |
Variable Costs (6,400 units at $71) | 454,400 |
Contribution Margin | $281,600 |
Fixed Cost | 19,700 |
Net Income (Loss) | $261,900 |
Prepare a forecasted contribution margin income statement for Brahma if they incur the additional advertising costs, using the above information.
Forecasted contribution Margin Income Statement | |
Sales | $ |
Variable Costs | |
Contribution Margin | $ |
Fixed Cost | |
Net Income (Loss) | $ |
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