Antonio: I think we need to think of some way to increase our profitability. Do you have any ideas? Shohreh: Well, I think the best strategy would be to become aggressive on price. Antonio: How aggressive? Shohreh: If we decrease the price by 10% per unit and maintain our advertising budget, I think we will increase sales volume to 140% of our current sales. Antonio: I think that is the wrong way to go. You are giving up too much on price. Instead, I think we need to follow an aggressive advertising strategy. Shohreh: How aggressive? Antonio: If we increase our advertising by 15%, we should be able to increase sales volume to 130% of our current sales without any change in price. Shohreh: I don't think that is reasonable. We will never cover the increased advertising costs. Part 1: Calculate (1) unit contribution margin, (2) contribution margin, (3) contribution margin ratio, and (4) operating income for all three options. *Hint: Set up Contribution Ma Income Statement to calculate operating income. Part 2: Which strategy is best and why? Remember to consider operating income, contribution margin ratio, etc. in your analysis. Discussion Response Due by Saturday: Respond to another student