Decor Seating Company is currently selling 1.000 sverized bean bag chain a month at a prio375 per chalt: The variabile con la cara de purchase the best bag handa como fondo ni $9.000 per month The company is considering making operational changes and want to low how the change will impactos precio Head the Requirement 1. Prepare the company's current contribution margin income stat Decor Seating Company Contribution Margie Income Sulement Salewne Variable expens Cout of goods Operating per Contribuon margin Fhead wapen Operating into floom Requirement 2. Calculate the changes operating income that would storing that the folosing dates Contact the same per in Requirement 1 Consider the party a AhernativetThe company believes volume widos y 10 people are all competencer peront Conne Decor Seating Company Contribution Margin income Statement Sales revenue Cost of goods sold Operating expen Contribution margin Operating income) Operating income bom inplementing these changes would b. Alternative 2: The company is that spending an add 5500 voting home sales by www Decor Seating Company Contribution Mari income State b. Alternative 2: The company believes that spending an additional 5 500 on advertising would come sales ne se weg Decor Seating Company Contribution Margin Income Statement Sales revenue Variable expenses Cost of goods sold Operating expenses Contribution marge Fixed expense Operating income foss) b. Alternative 2: The company believes that spending an additional 55 500 on advertising would increase sales volume by Users or a minus in for a pering Decor Seating Company Contribution Margin Income Statement Sales revenue Variable pene Cost of goods sold Operating expenses Contribution margin Fixed expense Operating comedoss) from Requirement Operating income to implementing these changes would Alternative: The company is coming asing the pas Decor Seating Company Contribution Margie Income Statement C of goods Operating per Carbon Operating d. Alternative 4: The company would like to see the product from domestic suppliers who charge mere for each unit Managbeves that the whole allow the company to increase the price by 59 perunt in on the company would have to spend a deals 500 incoge the word of this the minus for an operating to Decor Seating Company Contribution Margincome Statement Sales Variable expense Costopood Operatings Coutin mar 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 16% if salespeople are paid a commission of 9% of the sales price rather than the current $4 per unit b. Alternative 2: The company believes that spending an additional $5,500 on advertising would increase sales volume by 6% c. Alternative 3: The company is considering raising the selling price to $89. but believes volume would drop by 10% as a result d. Alternative 4: The company would like to source the product from domestic suppliers who charge $6 more for each unit. Management believes that the "Made in the USA" label would increase sales volume by 16% and would allow the company to increase the sales price by $9 per unit. In addition, the company would have to spend an additional $5,500 in marketing costs to get the word out to potential customers of this change 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 16% if salespeople are paid a commission of 9% of the sales price rather than the current $4 per unit. b. Alternative 2: The company believes that spending an additional $5,500 on advertising would increase sales volume by 6%. c. Alternative 3: The company is considering raising the selling price to $89, but believes volume would drop by 10% as a result. d. Alternative 4: The company would like to source the product from domestic suppliers who charge $6 more for each unit. Management believes that the "Made in the USA" label would increase sales volume by 16% and would allow the company to increase the sales price by $9 per unit. In addition, the company would have to spend an additional $5,500 in marketing costs to get the word out to potential customers of this change. Decor Seating Company is currently selling 1.000 oversized bean bag chairs a month at a price of 375 per chalk The varile cont of each chal wat includes 535 to purchase the bean bag this commission Feed contre 39,000 per month. The company considering making several operational changes and wants to know how the change wil impedin operating noor Read the bank Hequirement 1. Prepare company's current contebution margin income statement (i perinteten er a miran sign for an operating dow) Decor Seating Company Contribution Margin Income Statement Serevenue Variable expenses Coul of goods sold Operating expenses Conton meg Fredere Operating income Requirement 2. Calculate the change in operating that would result from implementing ach of the following independently heative Comwe wachttro me curent comme se postal in Requirement Consider each antieparately a. Alternative 1. 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Alternative 3The company is considering raising the selling price to but bolleves volume would drop by 10% sarut (focano Choose from any or onder any number in the inputs and then continue to mendous This Test 100 Decor Seating Company is currently selling 1.000 ovested bean bag chairs a month at a price of 575 per chair. The variate conto each chats dudes 55 to purchase the chain todas commission Fixed costs are $9.000 per month The company is considering making several operational changes and wants to know how the change will impact singhe Read the c. Alternative 3: The company is considering raising the ling price 589.but boleves volume would drop by 10% ( pars singles Decor Seating Company Contribution Margin Income Statement Sales Cost of goods Operating expenses Contribution margin Operating income Operating income from mang changes would Alternative. The company to the production des pers who has more for each ont Management De Made in USA allow the company to increase the sales by 3 perunt in the cowok dan anal 35 500 inmating costs to generar och Choose romance any in the mother one to the next O Decor Seating Company is currently selling 1.000 oversized bean bag chairs a month at a price of $75 per chi The variable cost of each char solid clue 535 to purchase the bean bag darle und Commission Fixed costs are $9.000 per month The company is considering making several operational changes and wants to know how the change will impacts operating Read the d. Alternative 4: The company would like to source the product from domestic suppliers who charge 56 more for each ont. Management believes that the Made in the USA"label wone med allow the company to increase the sales price by 59 per unit in addition the company would have to spend an additional 35.500 in marketing cools to get the word out to potential customs of this change the minus sign for an operating foss) Decor Seating Company Contribution Margin locome Statement Sales revente Variable expenses Cost of goods sold Operating expenses Contribution margin Fred expenses Operating income Operating income from mang theo change woord