HELP ASAP

1. (10 points) Johnson Men's Clothing revenues and cost data for 2020 are as follows: $ $ $ 600,000.00 300,000.00 300,000.00 Revenues Cost of Goods Sold Gross Margin Operating costs: Salaries (fixed) Sales Commission (10% of Sales) Depreciation of Equipment and Fixtures Store Rent ($4,500 per month) Other Operating Costs Operating Income (Loss) $ $ 170,000.00 60,000.00 20,000.00 54,000.00 45,000.00 $ $ $ $ 349,000.00 (49,000.00) Mr. Johnson, the owner of the store, is unhappy with the operating results. An analysis of other operating costs reveals that it includes $30,000 variable costs, which vary with sales volume, and $15,000 (fixed) costs. a. Compute the contribution margin of Johnson Men's Clothing. Also compute the contribution margin percentage (Hint: Assume all costs of Goods Sold are variable costs). b. Mr. Johnson estimates that he can increase revenues by 55% by incurring additional advertising costs of $7,500. Calculate the impact of the additional advertising costs on operating income