different products, its managers prefer to calculate the breakeven point in terms of sales dollars rather than units.

Read the requirements.

Requirement $1.$ What is Ullie's current operating income?

Begin by identifying the formula to compute the operating income.

Sales revenue $-$ Variable expenses $-$ Fixed expenses $=$ Operating income

The operating income is

Requirement $2.$ What is Ullie's contribution margin ratio?

Begin by identifying the formula to compute the contribution margin ratio.

Contribution margin $$ Sales revenue $,=,$ Contribution margin ratio

$($Enter the ratio as a whole percent.$)$

The contribution margin ratio is $\%.$

Begin by identifying the formula to compute the breakeven point in sales dollars.

$($ Fixed expenses $+$ Operating income $)$ Contribution margin ratio $=$ Breakeven sales $in$ dollars

$($Round your answer up to the nearest whole dollar.$)$

The breakeven point in sales dollars is advertising campaign have on the company's annual operating income?

If Ullie embarks on this advertising campaign, sales revenue and variable costs will will cause the contribution margin to increase by $18\%.$ However, fixed costs will rise by $$240,000$ due to the advertising.

What effect would this advertising campaign have on Ullie's annual operating income?

The effect would be perating income of