The ChukkaFit Shoe Company produces its famous shoe, the Divine Loafer that sells for $50 per pair. Operating income for 2017 is as follows: E (Click the icon to view the income statement.) ChukkaFit Shoe Company would like to increase its profitability over the next year by at least 25%. To do so, the company is considering the following options: (Click the icon to view the options.) Read the requirement. Evaluate each of the alternatives considered by ChukkaFit Shoes. (Use parentheses or a minus sign for an operating loss.) Alternative Alternative Alternative Alternative i More Info 300000 Sales revenue Variable cost Contribution margin 1. Fixed cost 2. Replace a portion of its variable labor with an automated machining process. This would result in a 20% decrease in variable cost per unit, but a 15% increase in fixed costs. Sales would remain the same. Spend $15,000 on a new advertising campaign, which would increase sales by 30%. Increase both selling price by $15 per unit and variable costs by $6 per unit by using a higher quality leather material in the production of its shoes. The higher priced shoe would cause demand to drop by approximately 20%. Add a second manufacturing facility that would double ChukkaFit's fixed costs, but would increase sales by 70%. Operating income (loss) Do any of the options meet or exceed ChukkaFit's targeted increase in income of 25%? (Round your answers to the nearest whole percent. Use 4. Percent change in operating income % Alternative 1 Meet or Exceed? Print Print Done Done What should ChukkaFit do? V has the highest operating income. the targeted increase in income of 25% Choose from any list or enter any number in the input fields and then continue to the next question. Save for Later The ChukkaFit Shoe Company produces its famous shoe, the Divine Loafer that sells for $50 per pair. Operating income for 2017 is as follows: E (Click the icon to view the income statement.) ChukkaFit Shoe Company would like to increase its profitability over the next year by at least 25%. To do so, the company is considering the following options: (Click the icon to view the options.) Read the requirement. Evaluate each of the alternatives considered by ChukkaFit Shoes. (Use parentheses or a minus sign for an operating loss.) Alternative Alternative Alternative Alternative i More Info 300000 Sales revenue Variable cost Contribution margin 1. Fixed cost 2. Replace a portion of its variable labor with an automated machining process. This would result in a 20% decrease in variable cost per unit, but a 15% increase in fixed costs. Sales would remain the same. Spend $15,000 on a new advertising campaign, which would increase sales by 30%. Increase both selling price by $15 per unit and variable costs by $6 per unit by using a higher quality leather material in the production of its shoes. The higher priced shoe would cause demand to drop by approximately 20%. Add a second manufacturing facility that would double ChukkaFit's fixed costs, but would increase sales by 70%. Operating income (loss) Do any of the options meet or exceed ChukkaFit's targeted increase in income of 25%? (Round your answers to the nearest whole percent. Use 4. Percent change in operating income % Alternative 1 Meet or Exceed? Print Print Done Done What should ChukkaFit do? V has the highest operating income. the targeted increase in income of 25% Choose from any list or enter any number in the input fields and then continue to the next question. Save for Later