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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 $25,000 in advertising,

Brahma Industries sells vinyl replacement windows to home improvement retailers nationwide. The national sales manager believes that if they invest an additional $25,000 in advertising, they would increase sales volume by 11,000 units.

Sales (6,300 units at $115) $724,500
Variable Costs (6,300 units at $69) 434,700
Contribution Margin $289,800
Fixed Cost 19,500
Net Income (Loss) $270,300

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
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