Formal Seating Company is currently selling 3 200 oversized bean bag chairs a month at a price of $80 per chair. The variable cost of each char sold includes $55 to purchase the bean bag chairs from suppliers and a 57 sales commission. Foed costs are $5,000 per month. The company is considering making several operational changes and wants to know how the change wa impact its operating Income Read the requirements Requirement 1. Prepare the company's current contribution margin income statement. (Use parentheses or a minus sign for an operating 1088) Formal Seating Company Contribution Margin Income Statement Requirements Sales revenue Variable expenses 1. Prepare the comes ourrent contribution margin income statement. Cost of goods sold 2 Calculate the change in operating income that would result from implementing each of the following independent strategy alternatives. Compare each alternative to the current Operating expenses operating income as you calculated in Requirement 1. Consider each alternative Contribution margin separately a Alternative 1: The company believes volume will increase by 14% if salespeople are Food expenses paid a commission of 5% of the sales price rather than the current S7 per unit Operating income foss) b. Alternative 2. The contpany boloves that sponang an addition $6,000 on advertising would increase sales volume by 12% c. Alternative 3: The company is considering raising the selling price to $85, but believes volume would drop by 24% as a result d. Alternative 4: The company would like to source the product from domestic suppliers Enter any number in the odit fields and then click Check Answ who charge 57 more for each unit Management believes that the "Made in the USA tabel would not es volume by 14% and would alow the company to increase the sales price by 514 per unit In addition, the company would have to spend an parts 8 additional $1,000 in marketing costs to get the word out to potential customers of this remaining change wer