Homework: Chapter 7 Homework Score: 0.65 of 4 pts of completo) HW Score: 3727%.9.32 of 2 P7-71A (similar to) Questo Valet Seating Company currently selling 2.400 oversized bean bag chaina mort price of 570 per chair. The variable cost of each co od indudes $45 to purchase the bean bag chairs from uppliers and a state consFor $15.000 per month. The company is condering making several personal changes and wants to Wow how the change will impact is operang income Read the rements Roquirement 1. Prepare the company's current corbution margin income statement. Usportecedor amb for an operating Requirements - X jrch per 1. Prepare the company's current contribution margin income statement. 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 income as you calculated in Requirement 1. Consider each alternative separately. a. Alternative 1: The company believes volume will increase by 10% if salespeople are paid a commission of 5% of the sales price rather than the current $4 per unit b. Alternative 2: The company believes that spending an additional $2,000 on advertising would increase sales volume by 8%. c. Alternative 3: The company is considering raising the selling price to $80, but believes volume would drop by 15% as a result d. Alternative 4: The company would like to source the product from domestic suppliers who charge $8 more for each unit. Management believes that the "Made in the USA" label would increase sales volume by 10% and would allow the company to increase the sales price by $9 per unit. In addition, the company would have to spend an additional $1,500 in marketing costs to get the word out to potential customers of this change. er. Print Done