Based on these data, the monthly break-even sales volume is determined as follows: $12,000 (fixed costs) $8.00 (contribution margin per unit) =1,500 gallons or ($22,200) Required: 1. Currently, all store managers have contracts calling for a bonus of 20 cents per gallon for each gallon sold beyond the break-even point. Compute the number of gallons of ice cream that must be sold per month in order to earn a monthly operating income of $10,000 (round to the next gallon). 2. To increase operating income, the company is considering the following two alternatives: a. Reduce the selling price by an average of $2.00 per gallon. This action is expected to increase the number of gallons sold by 20 percent. (Under this plan, the manager would be paid their salary without a bonus.) b. Spend $3,000 per month on advertising without any change in selling price. This action is expected to increase the number of gallons sold by 10 percent. (Under this plan, the manager would be paid their salary without a bonus). 3. Draft a memo to management indicating your recommendation with respect to these alternative marketing strategies. The memo should include supporting evidence for your recommendations. Also, compare the possible strategies to what the company is currently doing. Compute the number of galions of ice cream that mut be sold per month in order to earn a monthiy operatine income of $10,000 (round to the nearest gallon) (Show calculations below) In this case you will be evaluating marketing strategies using the cost-volume-profit analysis model. There are three questions in this case. The first two require calculations that you will perform and analyze via the excel spreadsheet template that is provided. For the final question, you need to prepare a meme to management discussing your recommendations based on your analysis. This is a group assignment. You should work together as a group and submit one response in Engage. Case Study Background Information Purple Cow operates a chain of drive-ins selling primarily ice cream products. The following information is taken from the records of a typical drive-in now operated by the company