Question
Woodley Company reports the following contribution margin income statement. Woodley Company Contribution Margin Income Statement For Year Ended December 31 Sales (19,200 units at
Woodley Company reports the following contribution margin income statement. Woodley Company Contribution Margin Income Statement For Year Ended December 31 Sales (19,200 units at $225 each) Variable costs (19,200 units at $180 each) Contribution margin Fixed costs Income $ 4,320,000 3,456,000 864,000 648,000 $ 216,000 The marketing manager believes that increasing advertising costs by $162,000 will increase the company's sales volume to 22,000 units. Prepare a contribution margin income statement for the next year assuming the company incurs the additional advertising costs. Please submit your file attachment response in one of the approved file formats; Word file (.doc or .docx), Excel file (.xls or .xlsx), or PDF. To submit photo or image files please paste them into Word or PDF. Consult with your instructor as needed on their preferred file attachment format.
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