Question70f17 | x... LU i x : Current Attempt in Progress Daniel, the owner of a local poster shop, comes toyou for help. r\"We've only been breaking even the past two years, and I'm getting veryfrustrated.' I don't knowwhat to do because I feel like I've already tried to improve our processes as much as possible, but we still haveth been able to generate a prot. Do you have any suggestions as to how we can turn things around? | just don't think we can even consider moving forward with this business unless we can earn $12,000 in operating income next year. Even then, we'll have to think long and hard about what thefuture holds." Daniel shares the following information with you, as you ponder different scenarios to help your friend. Selling price $6.90 Cost for paper. perunit 0.?0 Cost for printing, per unit 0.35 Cost for film, per unit 0.50 Staff salaries 46,000 3ther operating costs 9,7?5 Afterthinking about it for a while, you Suggest the following possibilities to help him turn things around. 1. Lower the selling price by 10% to increase sales volume by 5%. 2. Advertise on the radio and with social media, for a combined cost of $1,000. to increase volume by 10%. 3. Use a more affordable paper on which to print the posters (available for $0.60 per unit}. in combination with a lessexpensive lm to coverthe top of the poster [available For $0.40 per unit]. 4. Instead of paying the salespeople a xed salary, move to a corn missionbased compensation plan (save $21,000 in salary; incur $1.50 per unit sold commission). which should increase sales volume by 20%. \f