Prepare a complete projected income statement in the contribution format for each scenario, in the manner of a flexible budget. Please show work Carolina Manufacturing Company has been operating at a loss for several years. A management team has assembled to determine what course of action to take next year to reach profitability. They begin by reviewing the most recent income statement (below). Carolina Manufacturing Company Income Statement For the Year Ended December 31 Sales (45,000 units at $15) $675,000 Less cost of goods sold: Direct materials 135,000 Direct labor 117,450 Manufacturing overhea 147,750 400,200 Gross margin 274,800 Less operating expenses Selling expenses Variable Sales commissions 40,500 Shipping 8,100 Fixed (advertising, salaries) 180,000 228,600 Administrative expenses Variable (billing and other) 2,700 Fixed (salaries and other) 72,000 74,700 Net loss ($28,500) E) The team considers the possibility of covering losses and/or generating profit through special orders. The company has been approached by an overseas distributor who wants to purchase 10,000 units on a special price basis. (These overseas sales would have no effect on regular domestic business.) There would be no sales commission on these sales; shipping costs would increase by 50%, while variable administrative costs would be reduced by 25%. In addition, a $5,000 insurance fee would have to be paid to cover the goods while in transit. What price would Carolina have to quote on the special order in order to realize a profit of $16,000 on total operations? Would you advise the team to pursue this possibility? Why or why not