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Please answer part 2d, 2e, 3 and if you can add 2c also. Thanks 48 Analysis with Contribution Income Statement The following data have been

Please answer part 2d, 2e, 3 and if you can add 2c also. Thanks image text in transcribed
48 Analysis with Contribution Income Statement The following data have been condensed from LaGrande Corporation's report of 2012 operations (in millions of euros): Manufacturing cost of goods sold Selling and administrative expenses Sales Variable Fixed Total 280 580 60 200 900 300 140 1. Prepare the 2012 income statement in contribution form, ignoring income taxes. 2. LaGrande's operations have been fairly stable from year to year. In planning for the future, top management is considering several options for changing the annual pattern of operations. You are asked to perform an analysis of their estimated effects. Use your contribution income statement as a framework to compute the estimated operating income (in millions) under each of the following separate and unrelated assumptions: a. Assume that a 10% reduction in selling pnces would cause a 30% increase in the physical volume of goods manufactured and sold. b. Assume that an annual expenditure of 30 million for a special sales promotion campaign c. Assume that a basic redesign of manufacturing operations would increase annual fixed manu- d. Assume that a basic redesign of selling and administrative operations would double the would enable the company to increase its physical volume by 10% with no change in selling prices. facturing costs by 80 million and decrease vanable manufacturing costs by 15% per product unit, but with no effect on physical volume or selling prices annual fixed expenses for selling and administration and increase the variable expenses for selling and administration by 25% per product unit; it would also increase physical volume by 20%. Selling prices would be increased by 5%. Would you prefer to use the absorption form of income statement for the Explain. preceding analyses? e. 3. Discuss the desirability of alternatives a-d in number 2. If only one alternative could be se which would you choose? Explain

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