Brahma Industries sells vinyl replacement windows to home improvement retailers nationwide. The national sales manager believes that if they invest an additional $24,000 in advertising, they would increase sales volume by 10,000 units. Sales (6,300 units at $113) $711,900 Variable Costs (6,300 units at $71) 447,300 Contribution Margin $264,600 Fixed Cost 19,600 Net Income (Loss) $245,000 Prepare a forecasted contribution margin income statement for Brahma if they incur the additional advertising costs, using the above information. Forecasted contribution Margin Income Statement Sales 1,841,900 Variable Costs 1,157,300 Contribution Margin 684,600 Fixed Cost 43,600 Net Income (Loss) 641,000

Brahma Industries sells vinyl replacement windows to home improvement retailers nationwide. The national sales manager believes that if they invest an additional $24,000 in advertising, they would increase sales volume by 10,000 units. Sales (6,300 units at $113) $711,900 Variable Costs (6,300 units at $71) 447,300 Contribution Margin $264,600 Fixed Cost 19,600 Net Income (Loss) $245,000 Prepare a forecasted contribution margin income statement for Brahma if they incur the additional advertising costs, using the above information. Forecasted contribution Margin Income Statement Sales 1,841,900 Variable Costs 1,157,300 Contribution Margin 684,600 Fixed Cost 43,600 Net Income (Loss) 641,000

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter4: Operating Activities: Sales And Cash Receipts

Section: Chapter Questions

Problem 4.8C

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