kleine company distributes a high quality bird feeder that sells for $45 per unit. variable are $18 per unit and fixed costs total $420000 annually.

Refer to the original data. Assume that the company sold 25,500 units last year. The sales manager is convinced that a 14% reduction in the selling price, combined with a $52,000 increase in advertising expenditures, would cause annual sales in units to increase by 20%. Prepare two contribution format income statements, one showing the results of last years operations and one showing what the results of operations would be if these changes were made

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