2000 0.000 Problem 1 (5 points Bob's Retail Clothing store bad revenues and cost data for 2021 as follow Revenge $2.000.000 Cost of Goods Sold vorable cost Gross Nagi Operating costs Saatesaved $90.000 Salescossione Depreciation of colment and fixtures Store rent $3.000 per month 36.000 19.000 180.000 Other operating costs Operating income 30,000 45.000 $20,000 An analysis of other operating costs reveals that it includes $100,000 variable costs, which vary with sales volume, and $29,000 fixed costs. Bob, the owner of the store, is unhappy with the operating results Required: 1. Compute the total contribution margin and (ii) the contribution margin percentage for Bob's Retail Clothing store. (8 points) 2. Compute breakeven in sales revenue. (5 points) 3. Bob estimates that he can increase units sold, and hence revenues by 5% by incurring additional advertising costs of $10,000. Calculate the impact of the additional advertising costs on operating income. (8 points) 4. Explain how cost structure (mix of fixed and variable costs) affects the sensitivity of profits to changes in volume. (4 points)