please help. original information is shown in the projected income statement

Situation #1: What would the effect be on the Projected Operating Income if you decreased your selling price by 6% to match a price change by one of your competitors? Month Original Operating Income New Operating Income Change in Operating Income % Change January February March Yes No Would you recommend this action? Reasoning/Rationale: (Non-financial) + Situation #2 What would the effect be on the Projected Operating income if you decided to improve your product's quality by buying a raw material that cost 12% more than your current material? Month Original Operating Income New Operating Income Change in Operating Income % Change January February March Yos No Would you recommend this action? Reasoning/Rationale: (Non-financial) 30 32 33 34 35 36 37 38 Situation #3 What would the effect be on the Projected Operating Income you decided to remove executive bonuses and sales commissions decreasing Variable Selling and Administrative costs by 8%. Month Original Operating Income New Operating Income Change In Operating Income % Change January + February March Would you recommend this action? Yes No Project #2 S B + Sales Projections in Units January 15,808 5 February 42,788 March 44,093 7 April 57,348 8 |May 47,174 9 ao Projected Sales Price/Unit $ 460.95 11 12 Monthly Projected Selling & Administrative Expenses 13 Variable Cost/Unit $ 2.59 14 Fixed Costs $ 3,768 15 16 Production: 17 Desired Ending Inventory 66.0% 18 Beginning Inventory (new business) 0 19 20 Materials 21 Desired Ending Inventory 42.3% Number of Materials per Unit 14.68 Projected Cost/Material Unit $ 16.09 Beginning Inventory (new business) 0 GAGA 22 23 24 25 29 30 Manufacturing Overhead Variable Cost/Unit 31 $3.62 + 32 Fixed Costs $8,162 33 34 35 36 2 March 3 5 PROJECTED INCOME STATEMENT January February Sales In Units 15,808 42,788 Sales Revenue $ 7,286,698 $ 19,723,129 $ Cost of Goods Sold: 4,683,917 12,678,104 Gross Profit (Margin) $ 2,602,780 $ 7,045,025 $ Selling and Administrative 44,711 114,589 8 (Operating) Expenses Operating Income 2,558,069 $ 6,930,436 $ 44,093 20,324,668 13,064,776 7,259,893 6 7 117.969 $ 9 7,141,924