Differential Analysis Report for Sales Promotion Proposal RocketShoe Company is planning a one-month campaign for August to promotesales of one of its two shoe products. A total of $105,000 has beenbudgeted for advertising, contests, redeemable coupons, and otherpromotional activities. The following data have been assembled fortheir possible usefulness in deciding which of the products toselect for the campaign. Cross-Trainer Shoe Running Shoe Unitselling price $40 $44 Unit production costs: Direct materials $ (7)$(10) Direct labor (2) (3) Variable factory overhead (2) (2) Fixedfactory overhead (4) (5) Total unit production costs $(15) $(20)Unit variable selling expenses (13) (12) Unit fixed sellingexpenses (7) (5) Total unit costs $(35) $(37) Operating income perunit $ 5 $ 7 No increase in facilities would be necessary toproduce and sell the increased output. It is anticipated that30,000 additional units of cross-trainer shoes or 25,000 additionalunits of running shoes could be sold without changing the unitselling price of either product. Required: 1. Prepare adifferential analysis report presenting the additional revenue andadditional costs anticipated from the promotion of cross-trainershoes and running shoes. Rocket Shoe Company Proposals for SalesPromotion Campaign Differential Analysis Report Cross-Trainer ShoesRunning Shoe Differential revenue from proposals $ $ Differentialcost of proposals: Direct materials $ $ Direct labor Variablefactory overhead Variable selling expenses Sales promotion expensesDifferential cost of proposals $ $ Net differential income fromproposed sales promotion campaign $ $