Save Formal ang Company culino 2.200 vnd bean bag that a momce of the varios chat include the SPOMISSFIRE TOUTAIRS Tavernador WISE Read the requirements Requirements Requirement 1. Prepare the company's current Corvinution margin income stateme Formal Seating Company Contribution Marin Incore Statement Salon revenue 5176,000 Variable expenses Cost of goods sold $ 77030 8.800 85.000 Operating expenses 10.200 Contraction margin 5.000 Fixed Dones 1. Prepare the company's current contribution margin income statement 2. Calculate the change in operating income mat would result from implementing each of the following independent strategy tematives Compare each afternative to the current operating income as you calculated in Requirement 1 Consider each alterative separately Alternative 1: The company believes volume will increase by 20% alespeople are paid a commission of 9% of the sai proor mante current $4 per unit Alternative 2. The company believes that spending an addtional $4.500 on advertising would incrossesse volume by c. Alternative 3: The company is considering raising the seling price to 594, but be volume would drop by 105 as a result d. Alternative 4. The company would like to source the product from domestic suppliers who charge 313 more for each unit Management Delieves that the "Made in the USA bol would in volume by 20% and would alow the company to increase the sales price by $10 per unitation, the company would have to spend an additional $7.000 in mariting costs to get the word out to potential customer of this change Operating income Matthew that we Print Done answer Help me solve this Video Get more help Points: 65 of 4 Save Forming Community wing 2.200 indband na more che cost of cochecidindo purchase PEDRU WSPISEFOTO Gonys congue Income Read the recents - X Requirements Requirement t. Prepare the comowys Current contribution margin income atomen Formal Seating Company Contribution Margin income Statement Wenn 70,000 Virib Cost of goods sold 5 77.00 O expenses 00.200 Convention margin Fande Operating increas ss) their 1 Prepare the company's own bon margininen 2. Calculate the change in operating income that would suit from implementing each of the following indendently alternatives Compare each aternative to the current rating income as you calculated in Requiremen 1 Consider catha maternal Allernative 1: The company es volume with by 20% pople are paid a commission of the price her than the current 4 perunt h. Alternative 2. The company belevostra spending an actional 56.600 on advertising would inches volume by Alternative. The company i considering raising the song to SHu beves vol drop by 10% as a result Alternative : The company would take to source the producto domicie wahre 313 more for each unit Management cloves the "Made in the USA label would increase sales volume by 20 and would low he company to create the sale by S10 per unit, in addition, the company would have to spend son 57.000 mkutng costs to get to word out to polecamers of the change M Print Done answer Help me solve this Video Get more help Homework: Chapter 7 Homework Question 5, P7-71A (similar to) HW Score: 42.6%, 10.65 of 25 points Part 2 of 9 e Points: 0.65 of 4 Save Formal Sesong Company currentyling 2 200 oversized bean bag chairs a month at a price of 580 per chat The vanable cost of each che sold includes 535 to purchase the bean bag cream suppliers and sales commission Foss are 5,000 per mon the company is considering making severa operasonarchanges and wants to how how the change wir impacts operating income Read the requirements Requirements Requirement 1. Prepare the company's current contribution margin income statemen Formal Seating Company Contribution Margin Income Statement Sales revenue 5 176.000 Variable expenses Cost of goods sold 77.000 8,800 35800 Operating expenses Contribution margin 00.200 Fored expenses 5.000 85.200 Operating income (los) Dan amant de the shanna in mare method forumima 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 attomative separately a. Alternative 1: The company believes volume will increase by 20% salespeople are paid a commission of 9% of the sales price rather than the Current $4 per unit b. Alternative 2: The company believes that spending an additional $4,500 on advertising would increase sales volume by 8% c. Alternative 3: The company is considering raising the selling price to 504, but believes volume would drop by 10% as a result d. Alternative 4: The company would like to source the product from domestic suppliers who charge 513 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 $10 per unit. In addition, the company would have to spend an additional $7.000 in marketing costs to get the word out to potential customers of this change, Print Done Help me solve this Video Get more help