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o Question Help *P7-65A (similar to) Vet Seating Company metyling 2.400 vented bean bag chain a month at a price of 50 per chair. The variation of each char soldidates 540 purchase the bean bag chains from suppliers and a $5 sales commissioned costs $15.000 per month. The company is considering making verlopenal changes and wants to know how the change impacts operating come Read the Requirement 1. Prepare the company's opent cordibution margin income statement. Une peritones or minus un to an operating lot.) Valet Seating Company Contribution Margininen Swem $190.000 Vabile per Contfood 0.000 10 000 5.000 13.000 Dong Requirement en cesting that women nach einer som vet och inte e carreterano come as you could not 1. Condomer Anemite a company es am wil nie so er han the current 18 pers. sunt cei Valeting Company Contration Margin income hanyumber in the old and then click Check X i Requirements 1. Prepare the company's current contribution margin income statement. 2. Calculate the change in operating income that would result from implementing each of the following independent strategy alternatives. Compare each alternative to the current operating income as you calculated in Requirement 1. Consider each alternative separately. a. Alternative 1: The company believes volume will increase by 10% if salespeople are paid a commission of 6% of the sales price rather than the current $5 per unit. b. Alternative 2: The company believes that spending an additional $4,000 on advertising would increase sales volume by 14%. c. Alternative 3: The company is considering raising the selling price to $100, but believes volume would drop by 15% as a result. d. Alternative 4: The company would like to source the product from domestic suppliers who charge $7 more for each unit. Management believes that the "Made in the USA" label would increase sales volume by 10% and would allow the company to increase the sales price by $7 per unit. In addition, the company would have to spend an additional $1,000 in marketing costs to get the word out to potential customers of this change. e Print Done

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