Differential Analysis Repart for Seles Promotion Proposal Rocket shoe Company is planning one-month campaign ar August to promota sales of one of its two shoa products. A total af $137,000 has baan budgeted for advertising, contests redeemable coupons, and at er p have been assembled for their poss ble usefulness in deciding which of the products to select for the campaign activities. The following data Cross-Trainer Running Shoe Shoe Unit zelling price $63 $62 Unit production costs s (11) Direct meteriels Direct labor arblefactory overhead Fixed factory overhead Total unit production costs $15) 5) (31) 19) s(24) Unit varlable selling expenses (20) Unit fixed selling expenses si55) $(57) Total unit costs Operating Income per unit Na Incrazsa in faciliziss would ba nacassary to produca and sall tha Increased output. It is anticipatad that 28,DDD additional units af cross-trainar shoas or 23,000 additional units of running shoas could be sold without changing the unit salling price of alther s 11 product Required: 1. Prepare differential analysis report presenting the additional revenuenddditional costs anticipated from the promotion of cross-trainer shoes and running shoes. Rocket Shoe Company Proposals for Sales Promotion Campaign Differential Analysis Re Cross-Trainer Shoes Running Shoe 1,943,000 | X s 1,564,000 Differental revenue from proposals Differental cost of proposals: Direct materials 345,n0 319,000X Direct laborY Variable factory overhead Variable selling expenses Sales promotion e 115,000 116,000 X 437,0 580,000X 137,000 V 137,000 1,126 U 1.239,0U0X Differentiel cuest of pruposals Net differential income from proposed sales promotion campaign704,010 X 438.no