Billy-Bob, the Sales Manager at Buffet Bahamas Ltd., a manufacturer of comfortable lawn chairs, emails you a suggestion that a 7% reduction in sales price combined with a $140,000 increase in radio-based advertising expenditures would increase units sold by 40%. While you sit on the beach reading this email, you think that you could probably take a look to see if that would make sense for the company. You review last year's results in the table below. Sales Less: Variable expenses Contribution margin Less: Fixed expenses Net operating income Last Year Total Per Unit $1,080,000 $30.00 432,000 12.00 648,000 $18.00 489,600 $158,400 You think the best thing to do is to prepare comparative statements to see if what Billy-Bob suggests will improve the bottom line. After preparing the statements, write Billy-Bob a business-like text message on what you have calculated and whether it supports his suggestion. (6 marks) Sales Less: Variable expenses Contribution margin Less: Fixed expenses Net operating income Proposed Total Per Unit You think the best thing to do is to prepare comparative statements to see if what Billy-Bob suggests will improve the bottom line. After preparing the statements, write Billy-Bob a business- like text message on what you have calculated and whether it supports his suggestion. (6 marks) Sales Less: Variable expenses Contribution margin Less: Fixed expenses Net operating income Proposed Total Per Unit