Question: Please solve for alternative 4 and does any requirement meet chukkafits targeted increase in income of 25%? What shoukd chukkafit do? R (similar to) P3.37

 Please solve for alternative 4 and does any requirement meet chukkafitsPlease solve for alternative 4 and does any requirement meet chukkafits targeted increase in income of 25%? What shoukd chukkafit do?

R (similar to) P3.37 The chukkafit shoe Company produces its famous shoe, the pavine Loafer that sells for STs per pair operatng income foo 2013 sas olows im he icon to view income statement) ChukkaFit shoe Company would like to increase its profitability over the next year by atleast aick the icon to view he optons To do so the companyis considering the ow ng p on" Evaluate each the alternatives considered by ChukkaFitshoes. Do any ofthe ons meet or exceed ChukkaFirs targeted increase in income of25wn what should chukkaFit do? op Evaluate each of the alternatives considered by ChukkaFtshoes Alternative Alternative Alternative Alternative More info s 300000 120,000 260000 1 Replace labor with an automated machining process This would Sales a 20% decrease vanable cost per unit, 15% increase fxed costs. would remain same Variable cost 00.000 990 129200 159.800 2. spend $40,000 on a new advertising campaign, which would increase sales by 40% 124200 148.000 108 000 higher both seling price bys10 perunt variable costs per unit using a in the producton shoes The higher pnced 79800 104 000 51,800 would cause demand to drop by approximately 15% Add a facility that would double ChuakaFirstxed costs, but would increase sales by 40% Data Table Sales revenue (S75 per pair) 300,000 Variable cost s30 per pain 120.000 180,000 108,000 operating income 72,000 Print Done

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