3 8 100% e) One of the managers came out with 3 proposals in order to improve the company's performance. For each proposal, calculate the contribution margin and discuss which proposal that the company should take on. Proposal 1 Reduce selling price by 10%. This would increase demand by 45%. Proposal 2 An inquiry was made by another company, Laura Ltd, to supply 80,000 units of sweaters annually to them. If the company decides to take the contract, the company needs to provide special additional packaging at a cost of RM 1.00 per sweater. The marketing director considers that in 2021 the sales from the existing business would remain unchanged at 280,000 units, based on a selling price of RM 20 if the contract is undertaken. Proposal 3 Reduce the selling price of sweaters by 10%. This would increase the sales volume to 320.000 unit of sweaters. However, the company will incur additional cost for advertisement at RM 30.000. 3 8 100% e) One of the managers came out with 3 proposals in order to improve the company's performance. For each proposal, calculate the contribution margin and discuss which proposal that the company should take on. Proposal 1 Reduce selling price by 10%. This would increase demand by 45%. Proposal 2 An inquiry was made by another company, Laura Ltd, to supply 80,000 units of sweaters annually to them. If the company decides to take the contract, the company needs to provide special additional packaging at a cost of RM 1.00 per sweater. The marketing director considers that in 2021 the sales from the existing business would remain unchanged at 280,000 units, based on a selling price of RM 20 if the contract is undertaken. Proposal 3 Reduce the selling price of sweaters by 10%. This would increase the sales volume to 320.000 unit of sweaters. However, the company will incur additional cost for advertisement at RM 30.000