Managerial Accounting: P24-3A L'Essence Cosmetics Company is planning a one-month

Managerial Accounting 
Problem 24-3A Differential Analysis for Sales Promotion Proposal 
L'Essence Cosmetics Company is planning a one-month campaign for June to promote sales of one of its two cosmetic products. A total of $150,000 has been budgeted for advertising, contests, redeemable coupons, and other promotional activities. The following data have been assembled for their possible usefulness in deciding which of the products to select for the campaign: 
    Moisturizer     Perfume 
Unit selling price 50 55 
Unit production costs: 
Direct materials 9 12 
Direct labor 3 4 
Variable factory overhead 2 3 
Fixed factory overhead 5 6 
Total unit production costs 19 25 
Unit variable selling expenses 16 15 
Unit fixed selling expenses 9 5 
Total unit costs 44 45 
Operating income per unit 6 10 

No increase in facilities would be necessary to produce and sell the increased output. It is anticipated that 24,000 additional units of moisturizer or 20,000 additional units of perfume could be sold without changing the unit selling price of either product. 

Required: 
1. Prepare a differential analysis as of June 15, 2014, to determine whether to promote moisturizer (Alternative 1) or perfume (Alternative 2). If an amount is zero, enter zero "0". 
2. Determine whether to promote moisturizer (Alternative 1) or perfume (Alternative 2). 
3. The sales manager had tentatively decided to promote perfume, estimating that operating income would be increased by $59,000 ($9 operating income per unit for 15,000 units, less promotion expenses of $76,000). The manager also believed that the selection of moisturizer would increase operating income only by, $32,000 ($6 operating income per unit for 18,000 units, less promotion expenses of $76,000). State briefly your reasons for supporting or opposing the tentative decision.
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