Return to Blackboard 3e C&C Sports Continuing Case 3-42 Universal Sports Exchange has just received increase, Universal is planning its sales and marketing campaign for notice from CAC Sports that the price of a baseball jersey will be increasing to $15.30 next year. In response to this the coming year. Managers have developed two possible plans and have asked you to evaluabe customers through an increase in the sales price. Managers believe that $1o,000 in additional on the sales price remaining the same as last year. The campaign would include a new database that The first plan cals for advertising targeted directly to current customers will allow the passing on the entire $0.50 cost increase to sales force to reach the ourrent year's sales volume of 51,975 jerseys The second plian relies on a new advertising campaign that focuses offers more potential customers than will be more successful in generating new sales than the current incentive-based sales and 5%to had access to in the past. The cost of the campaign is expected to be $5,000. Managers believe that the campaign marketing plan. As a result, they want to reduce the sales commission from of sales and increase saies salanes by S22,000. The cam paign i, expected to penerate an addtion 10% n sale TS EXCHANGE for the 52 Weeks Ending February 1, 2014 $1,039,500-$20.00 100% Less Variable expenses: Cost of goods sold $769,230 14.0 74% 62,370 831,600 16.00 80% Total variable expenses Contribution margin Less Fixed 207,900 ,4.00 20% Selling expenses Administrative expenses 116,500 51,500 Total fxed expenses Operating income 539,900 v (a) Your answer is correct How much would operating income oecrease if Universal did noehing to recover the increase in cost of goods sold, all other things esual (Round interdtian calculations and final answer to 2 decimal places o.g. 0.3.) Decrease in operating income Click if you would like to show work for this vestien: Show work 1763 29