Dufferential Analysis for Sales Promotion Proposal Sole Mates Inc. is planning a one-month campaign for July to promote sales of one of lits two shoe products. A total of s63,000 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 select for the campaign: No increase in facilities would be necessary to produce and sell the increased output. It is anticipated that 18,000 sdditional units of tennis shoes or 15,000 additicnal 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 (Aternative 1) or walking shoes (Aiternative 2). If an amount is zero, enter "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 (Aiternative 1) or walking shoes (Atemative 2). 3. The sales manager had tentatively decided to promote walking shoes, estimating that operating income would be increased by $57,000 ( $8 operating income per unit for 15,000 units, less promotion expenses of $63,000 ). The manager also believed that the selection of tennis shoes would reduce operating income by, $27,000 ( $5 operating income per unit for 18,000 units, less promotion expenses of $63,000 ). State brieffy your reasons for supporting or oppesing the tentative decision. The sales manager's tentative decision should be The sales manager considered the full unit costs instead of the differential (additional) revenue and differential (additional) costs. An analysis similar to that presented in port (1) would leod to the selection of: promotional campaign, because this atternative will contribute ito operating income than would be contnbuted by promoting