Prepare a income statement in contribution statement : The controller would like to reduce the unit selling price by 20%. He believes that this would generate enough sales for the plant to reach capacity.

Carolina Manufacturing Company \begin{tabular}{|l|r|r|r|r|} \hline & \multicolumn{1}{|l|}{ Total } & Per Unit (Number of Units 45,000) \\ \hline Sales Value & 675000 & 15 \\ \hline & & & \\ \hline & & 35000 \\ \hline Direct Materials & 135000 & 3 & \\ \hline Direct Labor & 117450 & 2.61 \\ \hline Manufacturing Overhead & 147750 & 3.283333333 & (45,000 units * .45 cents per unit) \\ \hline Salaries & 72000 & 1.6 & \\ \hline Total FC & 472200 & 10.49333333 & \\ \hline CM: & 202800 & 4.506666667 \\ \hline Variable Costs: & & & \\ \hline Sales Commission & 40500 & 0.9 & \\ \hline Shipping Expense & 8100 & 0.18 \\ \hline Selling Expense & 180000 & 4 \\ \hline Variable (Billing and Other) & 2700 & 0.06 \\ \hline \multicolumn{2}{|l|}{ Total VC } & 231300 & 5.14 \\ \hline Net Loss & 28500 & 0.633333333 & \\ \hline & & \\ \hline \end{tabular} Carolina Manufacturing Company \begin{tabular}{|l|r|r|r|r|} \hline & \multicolumn{1}{|l|}{ Total } & Per Unit (Number of Units 45,000) \\ \hline Sales Value & 675000 & 15 \\ \hline & & & \\ \hline & & 35000 \\ \hline Direct Materials & 135000 & 3 & \\ \hline Direct Labor & 117450 & 2.61 \\ \hline Manufacturing Overhead & 147750 & 3.283333333 & (45,000 units * .45 cents per unit) \\ \hline Salaries & 72000 & 1.6 & \\ \hline Total FC & 472200 & 10.49333333 & \\ \hline CM: & 202800 & 4.506666667 \\ \hline Variable Costs: & & & \\ \hline Sales Commission & 40500 & 0.9 & \\ \hline Shipping Expense & 8100 & 0.18 \\ \hline Selling Expense & 180000 & 4 \\ \hline Variable (Billing and Other) & 2700 & 0.06 \\ \hline \multicolumn{2}{|l|}{ Total VC } & 231300 & 5.14 \\ \hline Net Loss & 28500 & 0.633333333 & \\ \hline & & \\ \hline \end{tabular}