Modest Seating Company is currently selling 3.000 oversized bean bag chairs a month at a price of $75 per chaw The variable cost of each char sold includes $30 to purchase the bean bag chairs from suppliers and a $9 sales commission Forced costs are $6,000 per month. The company is considering making several operational changes and wants to know how the change will impact its operating income Read the requirements reports for a pering loss) Requirement 1. Prepare the company's current contribution margin income statement Modest Seating Company Contribution Margin Income Statement Sales revenue Variable expenses Cost of goods sold Operating expenses Contribution margin Foad expenses Operating income (o Choose from any list or enter any number in the input fields and then continue to the next question O Modest Seating Company is cry ing 3600 Gerd bean bag chairs a month price $75 percoThe various cha inutes 30 purchase the bean bag chairs from suppliers and 59 sales commission Fixed costs are $6.000 per month The Company is considering making several operational changes and wants to know how the change will impact its operating income Read the requirements 29 each of the following independent strategy w a s compare each tomative to the current operating income as commission of of the sales p rother than the currents per unit (Use parenthesesoramus sign for an Requirement 2. Calculate the change in operating income that would result from imple you calculated in Requirement Consider sachamative separately a. Alternative 1: The company believes volume will increase by 14% if salespeople operating loss) Modest Seating Company Contribution Margin Income Statement Sales revenue Variable expenses Cost of goods sold Operating expenses Contribution margin Choose from any list or enter any number in the input fields and then continue to the next que Modest Seating Company Contribution Margin Income Statement Sales revenue Variable expenses: Cost of goods sold Operating expenses Contribution margin Fixed expenses Operating income (loss) Operating income from implementing these changes would bys from Requirement 1. Choose from any list or enter any number in the input fields and then continue to the next question Modest Seating Company is currently selling 3.600 oversized bean bag chairs a month at a price of $75 per chair. The variable cost of each chair sold includes $30 to purchase the bean bag chairs from suppliers and a $9 sales commission. Fixed costs are $6.000 per month. The company is considering making several operational changes and wants to know how the change will impacts operating income Read the requirements b. Alternative 2: The company believes that spending an additional $6,000 on advertising would increase sales volume by 7% (Use parent s or a minus sign for an operating loss) Modest Seating Company Contribution Margin Income Statement Sales revenue Variable expenses Cost of goods sold Operating expenses Contribution margin Food expenses Operating income (loss) Choose from any list or enter any number in the input fields and then continue to the next ques Modest Seating Company is currently selling 3.600 Oversized bean bag chairs a month at a price of $75 per char The variable cost of each char sold includes $30 to purchase the bean bag chairs from suppliers and a $9 sales commission Foxed costs are $6.000 per month. The company is considering making several operational changes and wants to know how the change will impact its operating income Read the requirements Contribution margin Fored expenses Operating income (loss) Operating income from implementing these changes would by s t rom Roqu c. Alternative 3: The company is considering raising the soling price to $90, but believes volume od drop by 20% as a result (Us preses Modest Seating Company Contribution Margin Income Statement Sales revenue Variable expenses: Cost of goods sold Cost of goods sold Operating expenses Contribution margin Food expenses Operating income (s) Operating income from implementing these changes would by from R uirement 1. e d. Alternative 4: The company would like to source the product from domesticles who charge $10 more for each unt Management beves that the Made in the USA w wodin 145 and would allow the company to increase the price by $13 perunt. In addition, the company would have to send an adona 56.000 in a ng co to get the word out to po change (Use parentheses or a s sign for an operating loss) volume by of this s t Modest Seating Company Choose from any list or enter any number in the input folds and then continue to the next question Modest Seating Company is currently selling 3.600 oversized bean bag chairs a month at a price of $75 per chi The variable cost of each chairsold includes $30 to purchase the bean bag chairs from suppliers and a $9 sales commission Fixed costs are $6.000 per month. The company is considering making several operational changes and wants to know how the change will impact its operating income Read the requirements Modest Seating Company Contribution Margin Income Statement Sales revenue Variable expenses Cost of goods sold Operating expenses Contribution margin Forced expenses Operating income (loss) Operating income from implementing these changes would by s t rom Requirement1