Requirement 2. Calculate the change in operating income that would result from implementing each of the following independent strategy amatives Compare cheative to the current operating income as you calculated in Recurement 1. Consider each tomate separately a. Alternative 1: The company believes volume will increase by 18. if salespeople we paid a commission of 12 of the sale price rather than the currents per unit (Use parents or minus sign for an operating foss) Valet Seating Company Contribution Margin Income Statement Variable expens Cost of goods sold Operating expenses Contribution margin Fixed expenses Operating income (s) Operating income from implementing these changes would by $ from Requirement 1. Choose from any list or enter any number in the input fields and then click Check Answer parts o remaining Clear All b. Alternative 2: The company believes that spending an additional $5.500 on advertising would increase sales volume by 14% (Use parentheses or a minus sign for an operating loss) Valet Seating Company Contribution Margin Income Statement Sales revenue Variable expenses Cost of goods sold Operating expenses Contribution margin Food expenses Operating income (los) Operating income from implementing these changes would by $ from Requirement 1. Choose from any list or enter any number in the input fields and then click Check Answer. A narts Vista Seating Company is currently selling 2.400 oversized bean bag chairs a month at a price of $70 per chair. The variable cost of each charsold includes $35 to purchase the bean bag chairs from suppliers and a $9 sales commission costs are $8.000 per month The company is considering making several operational changes and wants to know how the change will impactos operating income 0 Requirements Requiremd or a minus sign for an operating loss) Sales rev Variable Opera Contribut 1. Prepare the company's current contribution margin income statement 2. Calore 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 chamative separately Alternative 1: The company beloves volume will increase by 20% salespeople are paid a commission of 5% of the sales price her than the current per unit b. Alternative 2: The company believes that spending a dditional $4.000 on advertising would increases volume by 14% Allamative: The company is considering raising the ling prices $75, but believes volume would drop by 30% as a result d. Alternative & The company would to source the product from domestic supples who charge 310 more for each unit Management believes that the "Made in the USA bel would increase solume by 20% and would low the many to increase the price by S7 por Unit in addition, the company would have to spend and $1,500 mating costs to get the word out to potential customers of this change Fixed exo Operating Enter any Print Done g parts
