Income Statement For the Year Ended December 31, 2018 Sales $8,500,000 Manufacturing Expenses Variable $3,250,000 Fixed overhead 640,000 3,890,000 Gross Margin $4,610,000 Selling and administrative expenses Commissions $580,000 Fixed marketing expenses 300,000 Fixed admin expenses 450,000 1,330,000 Net Operating Income $3,280,000 Fixed Interest expenses 230,000 Income before Taxes $3,050,000 Income Taxes (21%) 640,500 Net Income $2,409,500 Your company is considering out-sourcing the sales and marketing to an agency specializing in these types of sales. The outsourcing would remove the commissions, reduce the marketing by $270,000, and reduce the fixed administrative expenses by $35,000. The out-sourcing firm, Jangler Marketing, will charge a fee of 14% of sales. Jangler requires a 3-year contract. Jangler believes that it can increase sales by 10% for 2019 and 13% each year after (2020 and 2021). The company believes that with its current sales and marketing staff, sales will increase by 8% for 2019 and 9% in each year after (2020 and 2021). 1.Prepare contribution format projected income statements for 2019, 2020 & 202a assuming the company hires Jangler Marketing. 2.Prepare contribution format projected income statements assuming the outsourcing is rejected. (Please show how you got each answer)