Parisian Cosmetics Company is planning a one-month campaign for September to promote sales of one of its two cosmetics products. A total of $139,491 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:

	Mosturizer	Perfume
Unit selling price	$55.36	$59.58
Unit production costs
Direct materials	$ 9.08	$13.92
Direct labor	3.08	4.92
Variable factory overhead	3.05	4.93
Fixed factory overhead	6.10	3.98
Total unit production costs	$21.31	$27.75
Unit variable selling expenses	16.01	14.91
Unit fixed selling expenses	12.01	5.91
Total unit costs	$49.33	$48.57
Operating income per unit	$ 6.03	$11.01

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.

1. Prepare a differential analysis as of August 21 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.

Differential Analysis

Promote Moisturizer (Alternative 1) or Promote Perfume (Alternative 2)

August 21

1		Promote Moisturizer	Promote Perfume	Differential Effect on Income
2		(Alternative 1)	(Alternative 2)	(Alternative 2)
3 Revenues		$1,217,920	$1,191,600
4 Costs
5 Direct Materials
6 Direct Labor
7 Variable Factory Overhead
8 Variable selling expenses
9 Sales Promotion
10 Total costs
11 Income (loss)