Dufterential Ahalysis for Sales Promotion Proposal Sole Mates Ihc. is plaoning a one-month campaign for July to promote sales of one of its two shot products. A total of shi, ooo has been budgeted far advertining. contests, redeemable coupons, and other promotional activities. The following data have been assembled for their poss ble usefulhess in dediing 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 23,000 additional units of tennis shoes or 19,000 additional units of waking shoes could be sold without changing the unit selling price of either product. 1. Prepare a differentiai analysis as of June 19 to determine whether to promote tennis shoes (Aternative 1 ) or walking shoes (Aiternative 2 ). If an amount is rero, ente "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. Deternhine whether to promote tennis shoes (Altemative 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 $90,000 ( 59 operating income per unt for 19,000 units, less promotion expenses of 181,000). The manager also believed that the selection of tennis shoes would reduce operating incache by, 534 ,000 (55 operating income per unit for 23,000 units, less promotion expenses of 381,000 ). State briefy your reasons for supporting or opposing the tentative decision. The sales manager's tentative decision shouid be . The sales manager considered the full unit costs instead of the differential (additional) revenue and differential (additional) costs: An analysis similac to that presented in part (I) wolld lead to the selection of for the promotional campaign, because this alternative will contribute to operating inceme than would be contributed by promoting