Gary, the owner of a local poster shop, comes to you for help. $$We$$ve only been breaking even the past two years, and I$$m getting very frustrated! I don$$t know what to do because I feel like I$$ve already tried to improve our processes as much as possible, but we still haven$$t been able to generate a profit. Do you have any suggestions as to how we can turn things around? I just don$$t think we can even consider moving forward with this business unless we can earn $$10,000$ in operating income next year. Even then, we$$ll have to think long and hard about what the future holds.$$ Gary shares the following information with you, as you ponder different scenarios to help your friend. Selling price $$6\mathrm{.}80$ Cost for paper, per unit $0\mathrm{.}70$ Cost for printing, per unit $0\mathrm{.}90$ Cost for film, per unit $0\mathrm{.}45$ Staff salaries $46,000$ Other operating costs $13,850$ After thinking about it for a while, you suggest the following possibilities to help him turn things around. $1.$ Lower the selling price by $10\%$ to increase sales volume by $5\%.2.$ Advertise on the radio and with social media, for a combined cost of $$1,000,$ to increase volume by $10\%.3.$ Use a more affordable paper on which to print the posters $($available for $$0\mathrm{.}60$ per unit$),$ in combination with a less$-$expensive film to cover the top of the poster $($available for $$0\mathrm{.}40$ per unit$).4.$ Instead of paying the salespeople a fixed salary, move to a commission$-$based compensation plan $($save $$21,000$ in salary; incur $$1\mathrm{.}55$ per unit sold commission$),$ which should increase sales volume by $20\%.$ Analyze each of the proposals against the current situation to determine if it will help Gary achieve his profit goal. $($Enter loss using either a negative sign preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).$ Round answers to $2$ decimal places, e$.$g$.5,125\mathrm{.}25.)$ Operating Income Option $1$ $enter a dollar amount rounded to $2$ decimal places Option $2$ $enter a dollar amount rounded to $2$ decimal places Option $3$ $enter a dollar amount rounded to $2$ decimal places Option $4$ $enter a dollar amount rounded to $2$ decimal places After these initial discussions, Gary realizes that he has ignored any possible tax effects thus far. He estimates that his business will be subject to a $30\%$ tax rate. Will any of the proposed scenarios allow him to reach an after$-$tax income goal of $$10,000?$ If so$,$ which one$($s$)?($Round answers to $2$ decimal places, e$.$g$.5,125\mathrm{.}25.)$ After$-$Tax Operating Income Reach After$-$Tax Income Goal? Option $1$ $enter a dollar amount rounded to $2$ decimal places select an option No Correct answer Option $2$

$enter a dollar amount rounded to $2$ decimal places select an option No Correct answer Option $3$ $enter a dollar amount rounded to $2$ decimal places select an option Option $4$ $enter a dollar amount rounded to $2$ decimal place