The breakeven point in sales dolas s 1,700,000 Requirement & Wil's top management is deciding whether to embark on a $210,000 advertising campaign The marketing firm has projected annual sales volume to increase by 18% as a result of this compaign Assuming that the projections are corect, what effect would this advertising campaign have on the company's annual operating income? Wambacks on this advertising campaign, sales revenue and vonable costs will 18% However, fed co will cause the contribution margin to crease by the advertang fall se by by %, which 5,092,000 due to Wit Medical Supply is a retailer of home medical equipment. Last year, Will's sales revenues totaled $0,700,000 Total expenses were $2.900.000. Of this amount approximately $1.508.000 were variable, while the remainder were sed. Since wir's offers thousands of different products, its managers prefer to calculate the breakeven point in terms of sales dollars rather than units Read the requirements Requirement 2. What is W's contribution margin ratio? Begin by identifying the formula to compute the contribution margin ratio Contribution margin Sales revenue (Enter the ratio as a whole percent) The contribution margin ratio is 70 % Requirement 3. What is the company's breakeven point in sales dollars? (ne The contribution margin ratio calculated in Requirement 2's already weighted by the company's actual sales mix) Begin by identifying the formula to compute the breakeven point in sales dollars Find expenses Operating income ). Contribution margin ratio Breakevens in dotar (Round your answer up to the nearest whole dollar) Contribution margin ratio + Inace The breakeven point in sales dollars is $ 1,700,000 Requirement 4. Wit's top management is deciding whether to embark on a $210,000 advertising campaign. The marketing fem hes projected annual sales volume to increase by 18% as a result of the campaign Asuming that the pos are corect, what effect would this advertising campaign have on the company's annual operating income? This adverting campaign, sales revenue and variable costs will by 000000 which
