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I need questions A to D to be answered. A contribution format income statement for the most recent year for Big Bear Comer Electronics Inc.

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I need questions A to D to be answered.

A contribution format income statement for the most recent year for Big Bear Comer Electronics Inc. is shown below Tel Depart ANIM TED Sales STO 5970000 SO TO Les variable 249 20.000 Contribution 34.000 2% SEO 2015 JUUD More 15. TO N SDOR $26 Lost Felpe Segneet Muri Les Comme Fred Espen Ne Operating Income PROBLEM BACKGROUND Short after graduating with a business degree from water State University, are hired as an in the District Manager of a national con electronics chain During your first day on the job, you meeting galing product lines carried by the chain. You leam about a few Inowion called HD definendo This product allows consumers to be tone only traditional AM and FM bands, but also to the newly created HD frequencies that most local radio stations are broadcasting tree of charge to listeners on adjacent frequencies that previously were used. Unlike satellite at this service requires a subscription charge Consumers who have heard HD radio tell you that AM-HID headcasts de FM and FM HD hodcasts sound e CD quality Due to improved manufacturing technologies, the cost manufacture HD radios han dropped matically PROBLEM: Your boss (the District Manager) has authorized you to spend $10,000 for atvertising for one of your chain's local stores, promoting one of their product lines. A Marketing Research class Bridgewater State University conducted a study indicating that the additional advertising would increase sales of the AMFM radios by $50.000 and increase sales of the HD radios by only $45.000 The local store manager (who never took a course in Managerial Accounting) argues that the advertising budget should be spent on the AMFM radios because it will result is more sales dollars. The store manager also argues that the AM/FM radio line's total sales are substantially higher than the HD line, therefore as the biggest selling itum, it should receive all advertising allotments REQUIRED: a) Using Excel, prepare new segmented income statements (including the new sales and cost data) based upon your recommendation Chint on what line would the $10,000 of dedicated advertising appear) You should submit 3 segitented income statements. The first being the original data on front of this page, the second, assuming the advertising is spent on AM/FM and the third assuming the advertising is spent on HD radios. b) Determine which product line (AMEM radios or HD radios) you will spend the $10,000 of advertising on. Show your work, justifying this decision, based upon a cost benefit analysis. What would you tell the store manager? Include a short memoto your boss (the District Manager) explaining your decision c) What form of media would you recommend using to advertise your chosen product line? (explain why) d) Are there any implicit considerations that should enter the decision on which product line to promote

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