The ComfySole Shoe Company produces its famous shoe, the Dlvine Loafer that sells for 575 per pair. Operating inccme for 2013 is as follows (Cick the iconto view te income statement} Co mti ole Shoe Company would like to increase ts profitablity over the next year by at least 25% To do so the companys eonside ing the foi an set O(Cick the-contoview the options.) Requirement Evaluate each of the a e ati es con dered by Com rSola Soes. Do any of the c o s meel or exceed Coms e's ta eted r crease n r come of 25%? What should Com rSoe do? Ev Data Tabile More Into Sal Sales revenue ($75 per pair) VarVariable cost ($45 per pair Com Contribution margn S450,COO1. Replace a portion of ts variable labar with an automated machining process. This would result in a 20% decrease in variable cost per unit, but a 10% increase in fred osts. Sales would reman the same 270,000 180,000 72000 5 108.000 2. Spend $35,000 on a new advertising campaign, which would increase sales by 30%. 3. Increase bath selling price by S10 per unit and vanable costs by $8 per unit by using a FIxnd cost higher qualny leather matenial in the production of its shoes The higher priced shoe would cause demand to drop by approximately 15% Opd Operating income Do 4. Add a second manufacturing faclity that wauld double ComlySale's fxed costs, but would come! increase sales by 60% per PrintDone PrintDone