GPB Manufacturers Incorporated is planning for their next fiscal year. They've called a meeting with their production managers, marketing managers, and strategic managers. Together the group has created various plausible scenarios. The CEO of the company has asked you to analyze one of these scenarios in further detail. Prepare the projected income statements for "Alternative #1". Determine what the best alternative is (base year or alt #1) and why. See below for the current base the scenarios were based off of as well as the assumptions for Alternative #1: $1,000,000 Base Year's Contribution Margin Style Income Statement Sales* Less: Variable Cost of Goods Sold** $550,000 Variable Selling and Administrative Expense*** 120,000 Total Variable Contribution Margin Less: Fixed Manufacturing Costs $100,000 Fixed Selling and Administrative Expense 150,000 Total Fixed Costs Net Operating Income 670,000 $330,000 250,000 $80,000 * # of Units Sold 1,000*/****** Sales $ / Unit $1,000 Variable COGS / Unit $550 Variable S&A/ Unit $120 The Variable COGS is comprised of the variable mfg costs (such as DM, DL, and Variable O/H) The Fixed Manufacturing Costs is comprised of the Fixed O/H costs ALTERNATIVE SCENARIO #1: Focus on increased quality (thereby increasing production costs) and branding (increased marketing, etc.). # of Units Sold is expected to remain the same as base year Sales $ /Unit is expected to increase by 25.00% from Base Year's Variable COGS / Unit to increase by 20.00% from Base Year's Variable S&A Costs per Unit will remain unchanged Fixed Manufacturing Costs to increase by $5,000 from Base Year's Fixed Selling & Admin to increase by $10,000 from Base Year's