please finish the requirments
eformal Sesting Company is currently selling 3.200 oversized bean bag chairs a month at a price of $80 per char. The variable cost of each chi sold includes 505 to purchase the bean bag chairstrom suppliers and a $8 sales como Find costs $11.000 per month. The company is considering making several operational changes and wants to know how the charge will parts operating income Read the Requirements Requirement 1. Prepare the company's current contribution margin Informal Sesting Company Contribution Margin income Statement Swive $ 250.000 $ 200.000 Colof goods Operating Coron maryn 2500 22400 15.000 1. Prepare the company's current contribution margin comment 2. Calculate the change in operating home that would trompeting mich of the blown necendent egy malive. Compare each eive to the current operating in as you are in Retent 1. Consider the Alterative 1: The comes we will by 203 recome of the price the current sport Alematie Theory the on wees om by Amative Theme 104, www Antive & The whether forecagement words 305 increase they wie W 0000 mange 1400 Opening Remerchange in ingin Cather to the right Entwberin that the check Chuc 7 Porn Xrchase the gch eg sey Requirements some 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 alternative to the current operating income as you calculated in Requirement 1. Consider each alternative separately. a. Alternative 1: The company believes volume will increase by 20% if salespeople are paid a commission of 13% of the sales price rather than the current $8 per unit. b. Alternative 2: The company believes that spending an additional $5,500 on advertising would increase sales volume by 12%. c. Alternative 3: The company is considering raising the selling price to $94, but believes volume would drop by 30% as a result. d. Alternative 4: The company would like to source the product from domestic suppliers who charge $13 more for each unit. Management believes that the "Made in the USA" label would increase sales volume by 20% and would allow the company to increase the sales price by $8 per unit. In addition, the company would have to spend an additional $6,000 in marketing costs to get the word out to potential customers of this change. result Jernative to Print Done Clear All Informal Sating Company is currently selling 2.200 oversized bean bag ch month at a price of $0 per chale The variable cost of each chair sold includes 365 to purchase the bean bag chars from supplied as a common Fxed costs are $15.000 per month The company is considering making everal operational changes and wants to how the charge will impacts operating income Read the cmedi Requirements. Prepare the company's current contribution margin income statement Urhessa mig for an operating Informal seating Company Contributinn Marin Innment
