Fruitas InG (Fruitas) Fruitas has the following segment information: Pastry, Fruit Juices & Desserts, and Fast Food. In 2022, the total common fixed expenses amounted to 175,540 (in thousands). Data concerning the company's segmented income statement performance for the year ended December 31, 2022, is as follows: Fruitas, Inc. Contribution For mat Segmented In come Statement For the year ended 31 December, 2022 Required: Assume that the business head of the Fast Food segment has proposed the following: Proposal no. 1 is to run promotions to improve customer recognition. The promotions will run for a year for a total cost of 35 million. The business head expects sales to increase by 20% during the same year when the promotion is run but expects to impact sales significantly during the following years from sales from repeat customers. Proposal no. 2 is to source cheaper raw materials to save on food costs. When implemented, the business head expects variable expenses to decrease by 5%. Compute the Segment Margin under each Proposal by presenting in a table/ Which one would you recommend? Discuss. Note: Segment Margin is Contribution Margin Less Traceable Fixed Expenses. Fruitas Inc. (Fruitas) Fruitas has the following segment information: Pastry, Fruit Juices & Desserts, and Fast Food. In 2022, the total common fixed expenses amounted to P 175,540 (in thousands). Data concerning the company's segmented income statement performance for the year ended December 31, 2022, is as follows: (in thousands) Fruitas, Inc. Contribution Format Segmented Income Statement For the year ended 31 December, 2022 TOTAL Sales Less: Variable Expenses Contribution Margin Less: Traceable Fixed Expenses Product Line or Segment Margin Less: Common Fixed Costs Net Operating Income P1,757,500 835,910 921,590 500,000 421,590 175,540 P246.050 Pastry 789,500 284,220 505,280 264,000 241,280 SEGMENTS Fruit Juices and Desserts 643,000 372,940 270,060 91,000 179,060 Fast Food 325,000 178,750 146,250 145,000 1,250 Required: Assume that the business head of the Fast Food segment has proposed the following: Proposal no. 1 is to run promotions to improve customer recognition. The promotions will run for a year for a total cost of 35 million. The business head expects sales to increase by 20% during the same year when the promotion is run but expects to impact sales significantly during the following years from sales from repeat customers. Proposal no. 2 is to source cheaper raw materials to save on food costs. When implemented, the business head expects variable expenses to decrease by 5%. Compute the Segment Margin under each Proposal by presenting in a table! Which one would you recommend? Discuss. Note: Segment Margin is Contribution Margin Less Traceable Fixed Expenses.