Technology of the Past (TOP) produces old-fashioned simple corkscrews. Last year was not a good year for sales but TOP expects the market to pick up this year. Last year's income statement showed (Click the icon to view the income statement.) To take advantage of the anticipated growth in the market, TOP is considering various courses of action: 1. Do nothing. TOP does nothing, it expects sales to increase by 10%. 2. Spend $4,000 on a new advertising campaign that is expected to increase sales by 50%. 3. Raise the price of the corkscrew to $8.50. This is expected to decrease sales quantities by 20%. 4. Redesign the classic corkscrew and increase the selling price to $10.50 while increasing the variable costs by $1.50 per unit. The sales level is not expected to change from last year. Requirements Evaluate each of the alternatives considered by TOP. What should TOP do? Requirement. Evaluate the alternatives by completing an income statement for each alternative. Alternative 1 Alternative 2 Alternative 3 Alternative 4 Sales Revenue 412500 562500 340000 525000 275000 375000 120000 325000 Variable Costs Contribution Margin 137500 187500 220000 200000 20,000 24,000 24000 24000 Fixed Costs 117500 163500 196000 176000 Operating Income