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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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