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

$$154,000$ has been budgeted for advertising, contests, redeemable coupons, and other promotional activities. The

following data have been assembled for their possible usefulness in deciding which of the products to select for the

campaign:

No increase in facilities would be necessary to produce and sell the increased output. It is anticipated that $22,000$

additional units of tennis shoes or $18,000$ additional units of walking shoes could be sold without changing the unit selling

price of either product.

Required:

Prepare a differential analysis as of June $19$ to determine whether to promote tennis shoes $($Alternative $1)$ or walking

shoes $($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.

Promote Tennis Shoes $($Alt$.1)$ or Promote Walking Shoes $($Alt$.2)$

June $19$