Sales (30,000 units x $20.00 per unit)	$600,000
Variable Expenses	360,000
Contribution Margin	240,000
Fixed Expenses	250,000
Net Operating Loss	$(10,000)

3. Refer to the Original data. The sales manager is convinced that a 14% reduction in the selling price, combined with an increase of $65,000 in the monthly advertising budget, will cause unit sales to increase by 100%. What will the new contribution format income statement look like if these changes are adopted? Explain your changes.