Save Formal Seating Company is currently selling 2.200 oversized bean bag cha month at a price of 580 per chai The variable cost of each cha bold includea 535 purchase the bean bag kom suppliers and a su sales commission FISC Core 55,000 per mont The companys considering making several operator changes and wants to now. now the change wir impacts operating income Read the requirements Requirements Requirement 1. Prepare the company's current contribution margin income statemer Formal Seating Company Contribution Margin Income Statement Sales revenue $ 176,000 Variable expenses Cost of goods sold $ 77.000 8.800 85.000 Operating expenses Contribution margin 00.200 Fred expenses 5.000 86200 Operating income (s) Dalaman rad the one in arstima hora de formime 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 cach alternative separately a. Alternative 1: The company believes volume will increase by 20% If salespeople are paid a commission of 9% of the sales price rather than the current 54 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 $94, 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 $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 $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 Hain ma solve this Viden Get more hain wer