1. What is Peter's current operating income? 2. What is Peter's contribution margin ratio? 3. What is the company's breakeven point in sales dollars? (Hint: The contribution margin ratio calculated in Requirement 2 is already weighted by the company's actual sales mix.) 4. Peter's top management is deciding whether to embark on a $190.000 advertising campaign. The marketing firm has projected annual sales volume to increase by 20% as a result of this campaign. Assuming that the projections are correct, what effect would this advertising campaign have on the company's annual operating income? Print Done nalis an Peter Medical Supply is a retailer of horro medical equipment. Last year, Peter's sales revenues totaled $6,300,000. Total expenses were $2,200,000 of this amount approximately 31,200,000 were vonate, minder word. Sie Peter's offers thousands of different products, is managers prefer to calculate the breakeven point in terms of sales dollars rather than units Read the requirements Ethem a whole percent) The con margins Requirements. What is the company's breve point in sales dollars (int: The contribution margin ratio calculated in Requirement is already weighted by the company's school le mix) Begin by tying the formule to come the braven point in sale dolar Opening on Yo Contribution margin rato trmkoven als in der Hound your the whole The 1.175.000 Ragement Point 100.000 The marketing for a projected in a very auto Ah wed with a chave the company's annual pero income sh he 1 CA 2 3 % 5 6 7 8 0 @ W E R T Y U O rebraven point in sales dois 5 1.175.000 equirement 4. Peter's top management is deciding whether to embark on a $190.000 advertising campaign. The marketing firms projected annual sales volume to increase my 20 of the campaign Auming that the projections are correct, what elect would this advertising campaign have on the company's annuat perang income? Peter horisontis vertingomis revenue and variable costs wil by which were the contrary to However, the costs will due Go Choose from any ristoranty nur uts and then click Check Awe part Clear All CA Question Help %E7-35A (similar to) Peter Medical Supplier of medical equipment. Last year, Peter's sales revenues totaled 6,300,000. Total expenses were $2,200,000. Of this amount, approximately $1,200,000 were variable, while and werd. Since Plus offers thousands of different products, managers prefer to calculate the breakeven point in terms of sales dollars rather than units Requirement. What is supersting income? Begin by deg for something income Fle Operating come 100.000 Com 1 8 Q W E R. . s Requirement 4. Peter's top management in deciding whether to embark on a $100.000 advertising campion. The mettent de les Assuming that the projections are correct, what effect would this advertising campaign have on the company's mul pereigneme? if Peter embarks on this advertising campaign, sales revenue and variable cote wa will cause the contribution margin to ty the advertising Choose from any list or enter any number is the input fields and then click Check CA part remaining 4 e R E w K H D S A M
