Heartland Watches Case (10 points) Imagine that you have just started working at Heartland Watches, a manufacturer of women's wristwatches. Heartland Watches was founded by John A.F. Whitney in 1974 in Kansas. After John Whitney's passing in 1992, his eldest daughter Marianne Whitney served as the company's president. Following is the income statement of Heartland Watches for the last fiscal year. Heartland Watches Income Statement for the Year Ended December 31, 2016 Sales Less: Cost of goods sold Gross Margin Less: Selling and administrative expenses Net Income $40,000,000 $22,000,000 $18,000,000 $15,000,000 Heartland Watches had manufactured 2 million watches, which had been sold to various department stores. At the start of 2017, the president, Marianne Whitney, unexpectedly decided to hike the Pacific Crest Trial following a difficult divorce. Her younger sister, Jodie Velasquez, became the new president. Jodie had worked for 15 years in the marketing department of the business. She knew very little about accounting and manufacturing, which were her sister's strengths. Jodie has several questions, including inquiries about pricing of special orders. Heartland Watches Case (10 points) Imagine that you have just started working at Heartland Watches, a manufacturer of women's wristwatches. Heartland Watches was founded by John A.F. Whitney in 1974 in Kansas. After John Whitney's passing in 1992, his eldest daughter Marianne Whitney served as the company's president. Following is the income statement of Heartland Watches for the last fiscal year. Heartland Watches Income Statement for the Year Ended December 31, 2016 Sales Less: Cost of goods sold Gross Margin Less: Selling and administrative expenses Net Income $40,000,000 $22,000,000 $18,000,000 $15,000,000 Heartland Watches had manufactured 2 million watches, which had been sold to various department stores. At the start of 2017, the president, Marianne Whitney, unexpectedly decided to hike the Pacific Crest Trial following a difficult divorce. Her younger sister, Jodie Velasquez, became the new president. Jodie had worked for 15 years in the marketing department of the business. She knew very little about accounting and manufacturing, which were her sister's strengths. Jodie has several questions, including inquiries about pricing of special orders