Kevin Gui's Furniture is a company producing high-end quality furniture for home and offices. The following revenues and cost data for 2022 are:

Revenues $473,000 Cost of goods sold (30% of sales) $141,900 Gross Margin $331,100 Operating costs: Salaries (Fixed) $153,000 Sales commissions (10% of sales) $47,300 Depreciation of equipment and fixtures $11,000 Store rent ($2,300 per month) $27,600 Other operating costs $39,310 $278,210 Operating profit (loss) $52,890

Mr. Kevin, the owner of the store, is unhappy with the operating results. An analysis of other operating costs reveals that it includes $33,110 variable costs, which vary with sales volume, and $6,200 (fixed) costs.

Do not enter dollar signs or commas in the input boxes.

a) What is the contribution margin of Kevin Gui's Furniture? Contribution margin: $Answer 439890

b) What is the contribution margin percentage? Round your answer to 2 decimal places.

Contribution margin percentage: Answer 93 %

c) Mr. Kevin estimates that he can increase revenues by 20% by incurring additional advertising costs of $16,000. As a result, how much would Kevin Gui's Furniture's operating profit be? Round all answers to the nearest whole number. Use the negative sign for an operating loss.

Incremental revenue: $Answer 71978

Incremental contribution margin: $Answer

Incremental fixed costs: $Answer

Incremental operating profit: $Answer

Operating profit (loss) at 20% increased revenue: