Differential Analysis for Sales Promotion Proposal Sole Mates the. 15 planning a one-month campaign for July to promote sales of one of its two shoe products. A total of $223,000 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 faciaces woule be necessary to produce and sell the increased output. It is antichated that 29,000 additional units of tennis shoes or 24,090 additional units of wolking shoes could be sold without changing the unit seiling price of either product. Required: 1. Prepane a differential analysis as of June 19 to determine whether to promote tennis shoes (Alernative 1) or waking shoes (Alternative 2). If an anount is zero, enter 'OF, Use a minus sign to indicate costs. If required, use a. minus sign to indicate a loss. Differential Analysis "O: 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) June 19 2. Determine whether to promote tennis shoes (Aitemative 1) or walking shoes (Alternative 2). 3. The sales manager had tentatively decided to promote walking shoes, estimating that operating incame would be increased by $137,000 ( $15 operating income per unit for 24,000 units, less promotion expenses of $223,000 ). The manager also believed that the sclection of tennis shoes would reduce operating income by, $96,000 (511 operating income per unit for 29,000 units, less promotion expenses of $223,000 ), State briefly your reasons for supporting or opposing thie tentative decision. The sales manager's tentative decision should be The sales manager considered the full unit costs instead of the differential (additional) revenun and differentiol (additional) costs. An analysis similar to that presented in part (1) would lead to the selection of for the promotional campaign, beceuse this aitemative will contribute to operating income than would be contributed by promoting