Part F?

(f) Just after Blake completed an income projection for 2,200 stuffed mascots, his supplier called to inform him of a 10% increase in cost of goods sold, effective immediately. Blake knows that he cannot pass the entire increase on to his customers, but thinks he can pass on half of the 10% increase while suffering only a 10% decrease in units sold. Calculate the operating income? (Round per unit to 2 decimal places and final answers to 0 decimal places, eg. 5,275.) New projection with sales price increase $ New projection without sales price increase $ Should Blake respond to the increase in cost of goods sold with an increase in price? e Textbook and Media Save for Later Attempts: unlimited Submit Answer Blake is evaluating two options to increase the number of mascots sold next month. First, he believes he can increase sales by advertising in the university newspaper. Blake can purchase a package of 12 ads over the next month for a total of $1,500. He believes the ads will increase the number of stuffed mascots sold from 1,500 to 2,200. A second option would be to reduce the selling price. Blake believes a 15% decrease in the price will result in 2,400 mascots sold. Calculate the operating income for each options? (Round per unit to 2 decimal places and final answers to 0 decimal places, e.g. 5,275.) Operating Income Option 1 $ 6075 Option 2 $ 4097 Which plan should Blake implement? Option 1 At what level of sales would he be indifferent between the two plans? (Round per unit to 2 decimal places and final answer to 0 decimal places, e.g. 5,275.) 803 mascots e Textbook and Media Solution Assistance Used