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Calculate contribution margin ratio. (Round ratio to 2 percentage places, e.g. 0.38=38% ) Contribution margin ratio % If sales increase by $65,000 per year, by
Calculate contribution margin ratio. (Round ratio to 2 percentage places, e.g. 0.38=38% ) Contribution margin ratio % If sales increase by $65,000 per year, by how much should operating income increase? (Use the rounded contribution margin ratio calculated in the previous part.) Change in operating income Last year, Oriole sold 42,000 ankle supports. The company's marketing manager is convinced that a 10% reduction in the sales price, combined with a $47,000 increase in advertising, will result in a 30% increase in sales volume over last year. Compute the projected income. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Projected income $ Should Oriole implement the price reduction? Oriole implement the price reduction because the estimated operating income is than the current operating income
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