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Keleher Industries manufactures pet doors and sells them directly to the consumer via their website. The marketing manager believes that if the company invests
Keleher Industries manufactures pet doors and sells them directly to the consumer via their website. The marketing manager believes that if the company invests in new software, they will increase their sales by 10%. The new software will increase fixed costs by $400 per month. Sales (3,100 units at $250) Variable costs (3,100 units at $115) Contribution margin Fixed costs Net income (loss) $775,000 356,500 418,500 19,500 399,000 Prepare a forecasted contribution margin income statement for Keleher Industries reflecting the new software cost and the associated increase in sales. The previous annual statement is in the box above (Original Data).
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