last part of requirement 4 needed!

Young Medical Supply is a retailer of home medical equipment. Last year, Young's sales revenues totaled $6,100,000. Total expenses were $2,590,000. Of this amount, approximately $1,342,000 were variable, while the remainder were fixed. Since Young's offers thousands of 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 Young's current operating income? Begin by identifying the formula to compute the operating income. Sales revenue Variable expenses Fixed expenses Operating income 78% The operating income is $ 3,510,000 Requirement 2. What is Young'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 Requirement 3. What is the company's breakeven point in sales dollars? (Hint: The contribution margin ratio calculated in Requirement 2 is already weighted by the company's actual sales mix) Begin by identifying the formula to compute the breakeven point in stales dollars. Breakeven sales Fixed expenses Operating income 1+ Contribution margin ratio = in dollars (Round your answer up to the nearest whole dollar.) The breakeven point in sales dollars is $ 1,600,000 Requirement 4. Young's top management is deciding whether to embark on a $260,000 advertising campaign. The marketing firm has projected annual sales volume to increase by 14% as a result of this campaign. Assuming that the projections are correct, what effect would this advertising campaign have on the company's annual operating income? If Young embarks on this advertising campaign, sales revenue and variable costs will rise by 14 %, which will cause the contribution margin increase by 14 %. However, fixed costs will rise $ 260,000 due to to by the advertising Enter the ratio as a whole percent.) The contribution margin ratio is 78 %. Requirement 3. What is the company's breakeven point in sales dollars? (Hint: The contribution margin ratio calculated in Requirement 2 is already weighted by the company's actual sales mix.) Begin by identifying the formula to compute the breakeven point in sales dollars. Breakeven sales Fixed expenses Operating income ) + Contribution margin ratio in dollars + Round your answer up to the nearest whole dollar.) The breakeven point in sales dollars is $ 1,600,000 Requirement 4. Young's top management is deciding whether to embark on a $260,000 advertising campaign. The marketing firm has projected annual sales volume to increase by 14% as a result of this campaign. Assuming that the projections are correct, what effect would this advertising campaign have on the company's annual operating income? If Young embarks on this advertising campaign, sales revenue and variable costs will rise by 14 %, which will cause the contribution margin increase by 191%. However, fixed costs will rise $ 260,000 due to the advertising What effect would this advertising campaign have on Young's annual operating income? to by The effect would be an increase in operating income of