P7-65A (similar to) Question Help Modest Seating Company is currently selling 1,500 oversized bean bag chairs a month at a price of $70 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 $15,000 per month. The company is considering making several operational changes and wants know how the change will impact its operating income. Read the requirements Requirement 1. Prepare the company's current contribution margin income statement. (Use parentheses or a minus sign for an operating loss.) Modest Seating Company Contribution Margin Income Statement Requirements Sales revenue Variable expenses Cost of goods sold 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 Operating expenses as you calculated in Requirement Contribution margin 1 Consider each alternative separately. Fixed expenses a. Alternative 1: The company believes volume will increase by 20 % if current so pe id acommission of 5% of the sales price rather than the Operating income (loss) b. Alternative 2: The company believes that spending on advertising would increase sales volume by 5%. additional $4.500 selling price to S90, c. but helieves yolume would dron hy 14% as a result d. Alternative 4: The company would like to source the product from beliaes that theMade in theS ae wold increesalesvolume hu 20 % and would allow the company to increase the sales price by $11 per unit. In addition, the company would have to spend an additional $4,500 in marketing costs to get the word of to potential customers change Print Done