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

Sales (13,300 units $20 per unit)$266,000 Variable expenses159,600 Contribution margin106,400 Fixed expenses118,400 Net operating loss$(12,000)3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $36,000 in the monthly advertising budget, will double unit sales. What will the new contribution format income statement look like if these changes are adopted?

PEM, Inc.Contribution Income Statement0$0