Instructions Kankakee Cosmetics Company is planning a one-month campaign for December to promote sales of one of its two cosmetics products. A total of $137,286 has been budgeted for advertising, contests, redeemable coupons, and other promotional activities. The following data have been assembled for their possible usefulness in deciding which of the products to select for the campaign: 1 2 Unit selling price 3 Unit production costs: 4 Direct materials Moisturizer Perfume $55.43 $59.78 $9.08 $13.93 Direct labor 3.10 4.97 6 Variable factory overhead 3.06 4.94 7 Fixed factory overhead 6.04 3.98 8 Total unit production costs $21.28 $27.82 Unit variable selling expenses 16.09 15.00 10 Unit fixed selling expenses 12.06 5.91 11 Total unit costs $49.43 $48.73 12 Operating income per unit $6.00 $11.05 No increase in facilities would be necessary to produce and sell the increased output. It is anticipated that 22,000 additional units of moisturizer or 20,000 additional units of perfume could be sold from the campaign without changing the unit selling price of either product. Required: 1. Prepare a differential analysis as of November 2 to determine whether to promote moisturizer (Alternative 1) or perfume (Alternative 2). Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required. 2. Determine whether to promote moisturizer (Alternative 1) or promote perfume (Alternative 2). 3. The sales manager had tentatively decided to promote moisturizer estimating that operating income would be increased by $83,714 ($11.05 operating income per unit for 20,000 units, less promotion expenses of $137,286). The manager also believed that the selection of perfume would reduce operating income by $5,286 ($6.00 operating income per unit for 22,000 units, less promotion expenses of $137,286). State briefly your reasons for supporting or opposing the tentative decision. Differential Analysis Shaded cells have feedback 1. Prepare a differential analysis as of November 2 to determine whether to promote moisturizer (Alternative 1) or perfume (Alternative 2). Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required. Question not attempted. 1 2 3 4(Label) 5 S 6 7 8 9 10 Differential Analysis Promote Moisturizer (Alternative 1) or Promote Perfume (Alternative 2) Score: 0/125 November 2 Promote Moisturizer Promote Perfume (Alternative 1) (Alternative 2) Differential Effect on Income (Alternative 2) Points: 0/29 Feedback Check My Work Subtract the variable costs, including the promotion costs, from the revenues for each product, based on proposed production. Determine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 1 from alternative 2