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Ivanhoe Orthotics Company distributes a specialized ankle support that sells for $ 40. The company's variable costs are $ 30 per unit: fixed costs total
Ivanhoe Orthotics Company distributes a specialized ankle support that sells for $ 40. The company's variable costs are $ 30 per unit: fixed costs total $ 380,000 each year, (a1) Your answer is incorrect. Calculate contribution margin ratio. (Round ratio to 2 percentage places, e.g. 0.38 - 38%) % Contribution margin ratio e Textbook and Media Attempts: 1 of 3 used Submit Answer Save for Later (a2) If sales increase by $ 44,000 per year, by how much should operating income increase? (Use the rounded contribution margin ratio calculated in the previous part.) $ Change in operating income (b) Last year, Ivanhoe sold 42,000 ankle supports. The company's marketing manager is convinced that a 10% reduction in the sales price, combined with a $51,000 increase in advertising, will result in a 33% 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 Ivanhoe implement the price reduction? Ivanhoe implement the price reduction because the estimated operating income is than the current
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