Differential Analysis for Sales Promotion Proposal Sole Mates Inc, is planning a one-month campaign for July to promote sales of one of its two shoe products. A total of 584,000 has been budgeted for advertising. contests, redeemable cou motional activities. The following dota have been assembled for their possible usefulness in decleting which of the products t No increase in facilities would be necessary to produce and sell the increased outpot. It is anticipated that 20,000 additional units af tennis shoer or 17,000 addiecoal units of walking shoes could be sold without changing the unit selling price of either product. 1. Prepare a differential analysis as of June 19 to determine whether to promote tennis shoes (Alternative 1 ) or walking shces (Alternative 2). If an amount is zero, enter 0. Use a minus sign to indicate costs. If required, use a minus sign to indicate a loss. Differential Analysis Promote Tennis Shoes (Alt, 1) or Promote Walking Shoes (Alt. 2) 2. Determine whether to promote tennis shoes (Alternative 1) or waliing shoes (Alternative 2). 3. The sales manager had tentatively decided to promote walking shoes, estimating that operating income would be increased by 569,000 ( 99 operating income per uni) for 17,000 units, less promotion expenses of $84,000 ). The manager also believed that the selection of tennis shoes would reduce operating income by, $36,000 ( $6 operating income per unit for 20,000 units, less promotion expenses of $84,000 ). State briefly your reasons for supporting or opposing the tentative decision. The sales manager's tentative decision should be The sales manager considered the full unit costs instesd of the differential (additional) revenue and differential (additional) costs. An analysis similar to that presented in part (1) would iead to the selection or for the promotional campoign, because this altemative will contribute to operating income than would be contributed by promoting