Woodley Company reports the following contribution margin income statement.

The marketing manager believes that increasing advertising costs by $162,000 will increase the companys sales volume to 22,000 units. Prepare a contribution margin income statement for the next year assuming the company incurs the additional advertising costs.

\begin{tabular}{|l|l|} \hline Woodley Company & \\ \hline Contribution Margin Income Statement & \\ \hline For Year Ended December 31 & \\ \hline Sales (19,200 units at $225 each) & $4,320,000 \\ \hline Variable costs (19,200 units at $180 each) & 3,456,000 \\ \hline Contribution margin & 864,000 \\ \hline Fixed costs & 648,000 \\ \hline Income & $216,000 \\ \hline \end{tabular}