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 years statement of comprehensive income showed

II.

To take advantage of the anticipated growth in the market, TOP is considering various courses of action:

1. Do nothing. If TOP does nothing, it expects sales to increase by 10%.

2. Spend $2,000 on a new advertising campaign that is expected to increase sales by 50%.

3. Raise the price of the corkscrew to $5. This is expected to decrease sales quantities by

20%.

4. Redesign the classic corkscrew and increase the selling price to $6 while increasing the

variable costsby $1 per unit. The sales level is not expected to change from last year.