XYZ Company expects sales to increase to $5,000,000 next year. Variable costs will remain at 70%. However, XYZ must open a new production line to be able to produce the quantity of product necessary to fulfill this higher level of sales. Because of this, fixed costs will increase from the current level of $500,000 to $700,000 for next year. Complete the following contribution margin income statement. Use words in the left column and dollar amounts in the right column. Do not use commas, dollar signs, or decimal points in your answers.

Sales	$5,000,000
costs
	$
costs
Net income