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Tools of the Past (TOP) produces old-fashioned simple corkscrews Last year was not a good...

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Accounting

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Tools of the Past (TOP) produces old-fashioned simple corkscrews Last year was not a good year for sales but TOP expects the market to pick up this year. Last year's income statement showed Click the loon to view the income statement) Toinke advantage of the anticipated growth in the market, TOP is considering various courses of action:- 1. Do nothing I TOP does nothing. expects sales to increase by 10% 2. Spend $1.500 on a new advertising campaign that is expected to increase sales by 50% 3. Raise the price of the corkscrew to $5.00. This is expected to decrease sales quantities by 20% 4. Redesign the desires and increase the selling price to $6.00 while increasing the variable costs by $1.00 per unit The sales level is not expected to change from last year Requirements Evaluate each of the weatives considered by TOP. What should TOP do? Requirement. Evaluate the motives by completing an income statement for Data Table Alternative 80.000 Si Revenue Vert Costs Contribution Margin Sales revenus (14.00 percorkscrew) Variable cost ($3.00 per corkscrew) Contribution margin Fixed Cow Operating income 12.000 Operating income Print Dono

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