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eBook Tennis 543 547 Show Me How Printem Diferential Analysis for Sales Promotion Proposal Sole Mates Inc. is planning a one-month campaign for any to

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eBook Tennis 543 547 Show Me How Printem Diferential Analysis for Sales Promotion Proposal Sole Mates Inc. is planning a one-month campaign for any to promote sales of one of its two shoe products. A total of 392,000 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 Walking Shoes Shoes Unit selling price Unit production costs: $(10) Direct labor Variable factory overhead (3) Fixed factory overhead Total unit production costs $(16) $(21) Unit variable selling expenses Unit fixed setting expenses (8) (4) 5[37) 535) Direct materials (2) (13) Total unit costs Operating income per unit No Increase in facilities would be necessary to produce and set the increased but it is noted that 22.000 din units or tennis shoes of 15,000 additional units of walking shoes could be sold without changing the units price of other product Required: Differential Analysis Promote Tennis Shoes (Alt. 1) or Promote Walking Shoes (Alt. 2) June 19 Promote Promote Differential Tennis Shoes Walking Shoes Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costis Direct materials Direct labor Variable factory overhead Variable selling expenses Sales promotion Pront (101) 2. Determine whether to promote tennis shoes (Alternative 1) or walking shoes (Alternative 2) 3. The sales manager had tentatively decided to promote walking shoes, estimating that operating income would be increased by 570.000 (1 operating income per unit for 10,000 units, less promotion expenses of $92,000). The manager to believe that the selection of tennis shoes would reduce operating Income by, $40,000 (56 operating income per unit for 22,000 units, less promotion expenses of 592.000). State breny your reasons for supporting or opposing the tentative decision

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