This is the requirement 1

Do the questions

Tennessee Craft produces two sorts of craft: Alora Paints and Fluffy Vases. The price charged for each craft is $10 for a Alora Paint and $8 for a Fluffy Vase. The variable cost incurred for each craft is $7 for a Alora Paint and $4 for a Fluffy Vase. The budgeted income statement for next period is as follows: Alora Paints Fluffy Vases Total In $1,650,000 $1,320,000 2,970,000 Revenues 660.000 1.815.000 Variable costs 000 660,000 1155,000 495,000 Contribution margins Direct fixed cost 245.000 210,000 455,000 250,000 450,000 700,000 Product margin 102,000 Common fixed cost Operating Income Required: Assume that the marketing manager changes the sales mix of the two crafts so that the ratio is five Alora Paints to three Fluffy Vases. Repeat Requirement 1. Refer to the original data. Suppose that Tennessee can increase the sales of Fluffy Vases with increased advertising. The extra advertising would cost an additional $12,000, and some of the potential purchasers of Alora Paints would switch to Fluffy Vases. In total, sales of Fluffy Vases would increase by 10,000 units, and sales of Alora Paints would decrease by 2,000 units. Would Tennessee be better off with this strategy