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1. Prepare the company's current contribution margin income statement. 2. Calculate the change in operating income that would result from implementing each of the following independent strategy alternatives. Compare each alternative to the current operating income as you calculated in Requirement 1. Consider each alternative separately. a. Alternative 1: The company believes volume will increase by 10% if salespeople are paid a commission of 7% of the sales price rather than the current $3 per unit. b. Alternative 2: The company believes that spending an additional $7,000 on advertising would increase sales volume by 6%. c. Alternative 3: The company is considering raising the selling price to $100, but believes volume would drop by 12% as a result. d. Alternative 4: The company would like to source the product from domestic suppliers who charge $5 more for each unit. Management believes that the "Made in the USA" label would increase sales volume by 10% and would allow the company to increase the sales price by $9 per unit. In addition, the company would have to spend an additional $4,500 in marketing costs to get the word out to potential customers of this change. Print Done sed commission and Vista Soating Company is curr e ng 1200 overred bean bag chan a month at a price of $95 per chair. The variable cost of each chair sold includes so to purchase the bean bag chairs from suppliers and a costs are $12,000 per month The company is considering making several operational changes and wants to know how the change will impact its operating Income Read the Cost of goods sold Operating expenses Contribution margin Food expenses Operating income ) Requirement 2. Calculate the change in operating income that would 1. Consider achternative party a. Alternative 1. The company believes volume will increase by 10% our from implementing each of the following independent strategy formatives Compare each iterative to the current operating income as you calculated in people are paid a commission of of the wes price rather than the current per unit (Use parents or a mission for an operating loss) Vista Seating Company Contribution Margin income Statement Sales revenue Variable expenses Cool of goods sold Operating expenses Contribution margin Fred expenses Operating income foss) Enter any number in the edit fields and then click Check Answer Check Arewer Clear All 7 parts