Contribution Income Statement-The ABC Lighting Company #3 The ABC Lighting Company makes and sells lamps. The company has a factory in Wisconsin and a home office in Chicago. The following information pertains to ABC for the month of June: 300,000 lamps Number of lamps sold Selling Price Costs: S10 per lamp $900,000 Materials Boxes for lamps Salaries for factory management Salaries for home office employees Factory cafeteria TV Advertising Sales Commissions Heat for the factory Rent on the Chicago office building Wages for lamp assembly line workers 120,000 40,000 90,000 22,000 31,000 $1.00 per lamp 10,000 30,000 300,000 Required A. Prepare a Contribution Income Statement for the month of June in good form. B. All scenarios are referenced to the above original data. Show calculations in a comparative contribution income statement. 1. The Vice President of Manufacturing believes that by using higher quality manufacturing materials, which will add $2 per unit more to the manufacturing cost, the company could sell 10% more lamps. Would this be a good decision? 2. The Vice President of Marketing believes that if ABC Lighting bought $300,000 of TV advertising on the Tonight Show, the company could sell 15% more lamps. Would this be a good decision? 3. The Vice President of Sales believes that if the selling price is lowered by $3, the company would sell 10% more lamps. Would this be a good decision? 4, The CEO believes that if the selling price were increased by 10%, the company would make more money even if it resulted in a 10% decline in lamps sold. Is the CEO correct? 5. The CEO believes that if the commission to the sales force is increased by S.50 to $1.50 per lamp, the selling price is lowered by $1, and the TV advertising is increased by $300,000, the company can increase its lamp unit sales by 10%. Would this be a good decision