Vew the income statements for the most recant period. Vew qualtative factors that mayimpact futureperformance. Vew other tashe, Requirement a. Identify which of the following would be relevant in terms of decisions and product line profitability; Requirement b. List at least three other factsitypes of information that you believe would be relevant to the decision of adding dance lessons. (Select three facts.) A. Management should consider the completion of a post-audit before making the final decision to add dance lessons B. Strain on teachers' schedules with the increased dass load C. Consideration of outsourcing one of the other product lines in order to focus on dance lessons D. Whether the addition of dance dasses will result in at reduction af attentance in other classes due to carnibalization E. Competitiveness in the dance instruction market (i.e., how many competitors are there, how tight is pricing, is there a large market of students interested in dance classes) Requirement c. Discuss (in terms of costibenefit) whether it is encugh to just give a list of relovant items or if it is important to try to estimate the "soft data". Generally, it is all relevant items so that they are not ignored in the quantitative analysis. However, management must consider the cost-benetit constraint when gathering "sott data", Income Statements \begin{tabular}{|l|c|c|c|c|} \hline \multicolumn{1}{|c|}{ Income Statement Items } & Music & Sports & Early Grades & Total \\ \hline Number of lessons & 800 & 1,600 & 3,000 & 5,400 \\ \hline Sales & $15,000 & $14,000 & $30,000 & $59,000 \\ \hline Direct materials, variable overhead, and selling & (3,300) & (800) & (5,000) & (9,100) \\ \hline Direct labor & (3,000) & (2,200) & (6,200) & (11,400) \\ \hline Fixed costs: allocated & (2,300) & (2,100) & (4,500) & (8,900) \\ \hline Fixed costs: avoidable & (2,400) & (1,600) & (3,000) & (7,000) \\ \hline Net Income & $4,000 & $7,300 & $11,300 & $22,600 \\ \hline \end{tabular} Qualitative factors that may impact future performance: - A competitor has opened up within 2 miles. - There is a rumor that the new lease company will try to raise the rent by 10%. - A nearby college is willing to give service hours and non-paid internships if - The most rents worktassist at Superior Lessons in the early grades division. made by early grades stud survey indicates high satisfaction with the progress have provided average satisfaction ratir regular flasses for golf and baseball and high satisfaction for basketball and tennis. Other Facts Other facts: - To increase interest in music lessons, the company offered social media discount coupons of half price for an introductory set of lessons. The sales reflect the additional volume, and the selling costs reflect the discount given. The company conducted an exit survey and was surprised to learn that the purchasers of the coupon lessons were not interested in paying full price in the future to continue lessons. - The previous margin (income divided by sales) for music lessons was approximately 50%. - The company is considering adding another line, "dance lessons", since many of the music instructors could also teach dance lessons. The company is trying to determine which numbers/facts would be relevant. Vew the income statements for the most recant period. Vew qualtative factors that mayimpact futureperformance. Vew other tashe, Requirement a. Identify which of the following would be relevant in terms of decisions and product line profitability; Requirement b. List at least three other factsitypes of information that you believe would be relevant to the decision of adding dance lessons. (Select three facts.) A. Management should consider the completion of a post-audit before making the final decision to add dance lessons B. Strain on teachers' schedules with the increased dass load C. Consideration of outsourcing one of the other product lines in order to focus on dance lessons D. Whether the addition of dance dasses will result in at reduction af attentance in other classes due to carnibalization E. Competitiveness in the dance instruction market (i.e., how many competitors are there, how tight is pricing, is there a large market of students interested in dance classes) Requirement c. Discuss (in terms of costibenefit) whether it is encugh to just give a list of relovant items or if it is important to try to estimate the "soft data". Generally, it is all relevant items so that they are not ignored in the quantitative analysis. However, management must consider the cost-benetit constraint when gathering "sott data", Income Statements \begin{tabular}{|l|c|c|c|c|} \hline \multicolumn{1}{|c|}{ Income Statement Items } & Music & Sports & Early Grades & Total \\ \hline Number of lessons & 800 & 1,600 & 3,000 & 5,400 \\ \hline Sales & $15,000 & $14,000 & $30,000 & $59,000 \\ \hline Direct materials, variable overhead, and selling & (3,300) & (800) & (5,000) & (9,100) \\ \hline Direct labor & (3,000) & (2,200) & (6,200) & (11,400) \\ \hline Fixed costs: allocated & (2,300) & (2,100) & (4,500) & (8,900) \\ \hline Fixed costs: avoidable & (2,400) & (1,600) & (3,000) & (7,000) \\ \hline Net Income & $4,000 & $7,300 & $11,300 & $22,600 \\ \hline \end{tabular} Qualitative factors that may impact future performance: - A competitor has opened up within 2 miles. - There is a rumor that the new lease company will try to raise the rent by 10%. - A nearby college is willing to give service hours and non-paid internships if - The most rents worktassist at Superior Lessons in the early grades division. made by early grades stud survey indicates high satisfaction with the progress have provided average satisfaction ratir regular flasses for golf and baseball and high satisfaction for basketball and tennis. Other Facts Other facts: - To increase interest in music lessons, the company offered social media discount coupons of half price for an introductory set of lessons. The sales reflect the additional volume, and the selling costs reflect the discount given. The company conducted an exit survey and was surprised to learn that the purchasers of the coupon lessons were not interested in paying full price in the future to continue lessons. - The previous margin (income divided by sales) for music lessons was approximately 50%. - The company is considering adding another line, "dance lessons", since many of the music instructors could also teach dance lessons. The company is trying to determine which numbers/facts would be relevant