The following is the summarised forecast income statement of Glencore Limited, a company which produces a single product XL, which comes in a standard size. The Financial Year is 2021 and the following forecast has been prepared by the Management Accountant.

Sales (200,000 units)	500,000
Direct material costs	270,000	100
Delivery costs	80,000	25/75
Delivery costs	8,000	75/25
Depreciation	36,000	0/100
Administration costs	75,000	0/100
Net profit for year	31,000

Required:

For the year 2021, management have been told that two possibilities could materialise:

a. Reducing the sales price by 5% will result in a 30% increase in sales volume; or Reducing the sales price by 10% will result in an increase in sales volume of 50%, provided that an additional 20,000.00 is spent on advertising.

In relation to both scenarios set out above, you are required to prepare a contribution statement for each one. You should also recommend which one to choose.