Jason has been able to break even the last two years, but cannot turn a profit. He must earn $9,000 in operating income next year.

Selling price per unit=$7.50

Cost for paper per unit=$.75

Cost for printing per unit=$.85

Cost for film per unit=$.45

Staff salaries=$46,000

Other operating costs=$27,030

What is the new operating income for the following suggestions?

scenario 1. Lower the selling price by 10% to increase sales volume by 5%.

scenario 2. Advertise on radio and social media for a combined cost of $1,000 to increase volume by 10%

sceario 3. Use a more affordable paper at $.60 per unit and less expensive film at $.40 per unit.

scenario 4. Instead of a fixed salary for salespeople, move to a commission-based compensation plan. Save $20,000 in salary; incur $1.60 per unit sold commission, which should increase sales volume by 20%.