Pat 1 of 2 RW Score: 09.016, 36 of 61 points Points of 21 Save Gumos of the Past (OOP) produces old-fashioned simple corkscrews. Last year was not a good year for sales but GOP expects the market to pick up this year Last year's income show (Click the icon to view the income statement) To take advantage of the anticipated growth in the market, GOP is considering various courses of action 1. Do nothing. If GOP does nothing, & expects sales to increase by 10% 2. Spend $4,500 on a new advertising campaign that is expected to increase sales by 40% 3. Raise the price of the corkscrew to $7.50. This is expected to decrease sales quantities by 20% 4. Redesign the classic corkscrew and increase the selling price to $0.00 while increasing the variable costs by $1.50 per unit. The sales level is not expected to change from last year Requirements Evaluate each of the alternatives considered by GOP. What should GOP do? Requirement. Evaluate the altematives by completing an income statement for each alternative Data table Alternative 1 Alternative 2 Alternative 3 Alternative 4 Sales Revenue 90,000 210000 130000 74.250 162000 81000 10000 540006 Sales revenues (15.00 per 1000 Variable Costs 67.500 Contribution Margin 24.750 54000 54000 270000 Variable cost ($4.50 per co 16.875 21375 16.875 16.875 Contribution margin 22.500 Fixed Costs Operating Income 3 7.825 52025 32626 253125 Fixed cast 16.875 $ 5425 Operating income Calculator Print Done X Clear all Check answer