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consider moving forward with this business unless we can earn $9,000 in operating income next year. Even then, we'll have to think long and hard
consider moving forward with this business unless we can earn $9,000 in operating income next year. Even then, we'll have to think long and hard about what the future holds." Gary shares the following information with you, as you ponder different scenarios to help your friend. After thinking about it for a while, you suggest the following possibilities to help him turn things around. 1. Lower the selling price by 10% to increase sales volume by 5%. 2. Advertise on the radio and with social media, for a combined cost of $1,000, to increase volume by 10%. volume by 20%. Analyze each of the proposals against the current situation to determine if it will help Gary achieve his profit goal. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answers to 2 decimal places, e.g. 5,125.25.) Operating Income Option 1 Option 2 Option 3 Option 4 $ After these initial discussions, Gary realizes that he has ignored any possible tax effects thus far. He estimates that his business will be subject to a 25% tax rate. Will any of the proposed scenarios allow him to reach an after-tax income goal of $9,000 ? If so, which one(s)? (Round answers to 2 decimal places, e.g. 5,125.25.)
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