PROVIDE THE ANSWERS WITH SOLUTIONSales 2,460,000Less: Variable expenses 615,000Contribution margin 1,845,000Less: Fixed expenses 922,500Net operating income 922,500

5-a. Refer to the original data. Assume that the company sold 43.000 units last year. The sales manager is convinced that a 12% reduction In the selling price, combined with a $154,000 Increase in advertising expenditures, would Increase annual unit sales by 30%. Prepare two contribution format Income statements: one showing the results of last year's operations, and one showing what the results of operations would be if these changes were made. (Do not round intermediate calculations. Round "Per Unit" answers to 2 decimal places.) Last Year Proposed Total Per Unit Total Per Unit Sales