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Required $3$

At present, the company is selling $16,000$ stoves per month. The sales manager is convinced that a $10\%$ reduction in the selling price would result in a $25\%$ increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes.

$\backslash$table$[[$Outback Outfitters$],[$Contribution Income Statement,Present,Proposed$],[,,16,000,$Stoves,,$20,000,$Stoves$],[,$Total,Per unit,Total,Per unit$],[$Sales$,$$$,1,920,000,$$$,120,$$$,2,520,000,$$$,118],[$Variable expenses,,,,$84,,,,98],[$Contribution margin,,$1,920,000,$$$,,,2,520,000,$$$,20],[$Fixed expenses$],[$Net operating income,$$,1,920,000,,,$$$,2,520,000,,]]$