based on these numbers indicate which scenario you would recommend for 2021 with a detailed description as to why you prefer that scenario.

Step #2 Income Projections: 2021 Projections 2021 Projections 2020 Actual Scenario 1 Scenario 2 8,280,000 $ 8,682,408 $ 8,046,504 $ Sales revenue Less variable expenses: Direct labor Direct materials Variable overhead Variable selling & admin Total variable expenses Contribution margin Less fixed mfg overhead Less fixed selling & admin Operating income 1,552,500 1,863,000 517,500 724,500 4,657,500 3,622,500 1,300,000.00 950,000 1,372,500 $ 1,478,446 2,093,081 553,725 790,719 4,915,971 3,766,437 1,404,000 959,500 1,402,937 1,375,205 1,810,463 449,501 604,378 4,239,546 3,806,958 1,313,000 931,000 1,562,958 $ $ Step #3 CVP Analysis: Contribution margin per unit Contribution margin ratio $ $ $ 35.00 43.75% 34.01 43.38% 42.77 47.31% Break-even sales in units Break-even sales in $$ 64,286 5,142,857 $ 69,494 5,448,350 $ 52,467 4,742,988 $