Due to erratic sales of its sole producta high-capacity battery for laptop computersPEM, Inc., has been experiencing difficulty for some time. The companys contribution format income statement for the most recent month is given below:

Sales (13,000 units $20 per unit)	$	260,000
Variable expenses		130,000
Contribution margin		130,000
Fixed expenses		145,000
Net operating loss	$	(15,000)
1. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $31,000 in the monthly advertising budget, will double unit sales. What will the new contribution format income statement look like if these changes are adopted?