Instructions Your small manufacturing operation has the following information concerning the main product: Current Situation: Sales in Units Sales in Dollars less: Variable Costs Contribution Margin less: Fixed Costs Operating Income 4,000 700,000 360,000 340,000 300.000 40,000 Your manager has asked you to prepare operating income estimates for these three following options. Option 1 - This scenario assumes a 5% increase in sales volume (units) as a result of 20,000 of increased advertising. As well, a $10 decrease in per unit variable cost can be realized as a result of new, automated production equipment. The new equipment will increase depreciation expense by $25,000 Option 2 - The sales manager believes that a $5 decrease in the sales price per unit will result in a 10% increase in sales volume (units), however, this will need to be accompanied by $30,000 of increased advertising. Assume that the automation described above will be applied in this scenario as well. Option 3 - If no additional dollars are spent for advertising, the sales manager predicts sales volume will drop 100 units from the Current situation. Assume the same decrease in per unit variable costs, and increased depreciation expense, as option 1 and 2 above. Perform the necessary calculations and answer the following quiz questions. Express your answers in whole dollars and be sure to include comm mmas so that the autograder won't mark it incorrect. Do not include dollar signs or your answer will be marked incorrect. Take the Quiz Again 1/1 pts Question 8 What is Option 3 contribution margin? 370,500 Sales in Units Sales in Dollars less: Variable Costs Contribution Margin 3.900 682.500 312.000 370,500 0/3 pts Incorrect Question 9 What is Option 3 operating income? 15.500