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Johnson Men's Clothing revenues and cost data for 2022 are as follows: Mr. Johnson, the owner of the store, is unhappy with the operating results.
Johnson Men's Clothing revenues and cost data for 2022 are as follows: 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
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