natural seating compant is currently selling 1,000 oversized bean bag chairs a month at a price of $95 per chair. the variable cost of each chair sold includes $45 to purchase the bean bag chairs from suppliers and $9 sales commission. fixed costs are $5,000 per month. the company is considering making several operational changes and wants to know how the change will impact its operating income.

Natural Seating Company is currently selling 1.000 overed bow bag chairs a month are of 85 per shit. The variable cost och har solcudes $45 to purchase bean bag their fimple and a con Fixed costs are 35.000 per month The company is considering in several operational changes and want to know how the change was operating income Read the requires Requirement 1. Prepare the company's current contribution margin income rent. (Ute pres ramus inter) Natural Seating Company Contribution Margint Income Sant Sales 35.000 Varble Cost of goods 45.000 3000 14.000 Operating Cantibion margin 41000 5.000 14000 RequirementChecharge open come that bumating each of the gender wees hom te 1. consacrative spel Alternative to the company ble volume de sa podaci o ofercier than the current per Natural Beating Company Contribution Margin income statement Requirements 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 18% if salespeople are paid a commission of 6% of the sales price rather than the current $9 per unit. b. Alternative 2: The company believes that spending an additional $4,000 on advertising would increase sales volume by 7%. c. Alternative 3: The company is considering raising the selling price to $105, but believes volume would drop by 12% as a result, d. Alternative 4: The company would like to source the product from domestic suppliers who charge $15 more for each unit. Management believes that the "Made in the USA" label would increase sales volume by 18% and would allow the company to increase the sales price by $8 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