Pamela Co. sells coffee. The above table summarizes the income statements of the company. Now assume that one advertisement company approaches to the store manager of Pamela Co. and suggests that the sales of Pamela Co. should be increased by 10% by a one-time advertising campaign that will cost Pamela Co. $5000. Pamela Co. accepts the offer, what is the financial advantage (disadvantage) for the company of going for the one-time advertising campaign? there is the financial advantage $1,000, then mark 1000 in the blank. Likewise, if there is the financial disadvantage ($1,000), then mark -1000 in the blank. Please use the egative sign in front of your answer to indicate financial disadvantage. No Partial Points Allowed.

  

Comparison of the Contribution Income Statement with the Traditional Income Statement Traditional Format Sales (10,000 Cups) Cost of goods sold Gross margin $ 100,000 70,000 $ 30,000 Selling & admin. expense 20,000 Net operating income $ 10,000 Contribution Format Sales (10,000 Cups) Variable expenses Contribution margin Fixed expenses Net operating income $ 100,000 60,000 $ 40,000 30,000 10,000 $