Case Study - please provide a memo in MS Word (.docx) Splash, Inc. produces paint and sells through independent hardware stores. In FY 2022, they produced and sold 295,000 gallons at \$14 per gallon. There was no beginning or ending inventory. Income Statement Y/E 12/31/2022 Gross profit margin =$1,239,000$4,130,000=30% The VP of Sales, Betty Jordan, has just negotiated deals with several large construction companies. She estimates sales will increase in 2023 by 50,000 gallons (at a reduced price on these orders of $12.00 per gallon.) Betty presented a rough estimate of the financial impact on the company: No-one in senior management questioned Betty's numbers. Except for you. You are an accounting intern at Splash. You say to yourself: "Fixed production costs, like rent and depreciation, are about $1,250,000 per year. Shipping costs, the only variable selling expense, is around $0.50 per gallon. If we look at things on a variable costing basis we may see a different result." How much extra profit, if any, will the company make in 2023 compared to 2022 ? Write a professionally worded memo to Betty, politely explaining why she may be wrong