Memofax, Inc., produces memory enhancement kits for fax machines. Sales have been very erratic, with some months showing a profit and some months showing a loss. The company's contribution format income statement for the most recent month is given below:

Sales (13,000 units at $40 per unit)	$	520,000
Variable expenses		312,000
Contribution margin		208,000
Fixed expenses		232,000
Net operating loss	$	(24,000)

3.

Refer to the original data. The president is convinced that a 10% reduction in the selling price, combined with an increase of $31,000 in the monthly advertising budget, will double unit sales. What will the new contribution format income statement look like if these changes are adopted?(Input all amounts as positive values except losses which should be indicated by minus sign. Omit the "$" sign in your response.)

Contribution Income Statement
(Click to select) Net operating income (loss) Fixed expenses Variable expenses Contribution margin Sales	$
(Click to select) Sales Variable expenses Net operating income (loss) Fixed expenses Contribution margin
(Click to select) Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss)
(Click to select) Contribution margin Fixed expenses Net operating income (loss) Variable expenses Sales
(Click to select) Contribution margin Variable expenses Fixed expenses Sales Net operating income (loss)	$