Mr. Lurvey, the owner of the store, is unhappy with the operating results. An analysis of other operating costs reveals that it includes $40,000 variable costs, which vary with sales volume, and $10,000 (fixed) costs. Read the requirements. Requirement 3. Mr. Lurvey estimates that he can increase units sold, and hence revenues by 25% by incurring additional advertising costs of $14,000. Calculate the impact of the additional advertising costs on operating income. Determine the formula to solve for the amount then complete the formula. Change in operating Increase in contribution margin Advertising costs income $ 500,000 225,000 275,000 Revenues Cost of goods sold (all variable costs) Gross margin Operating costs: Salaries fixed Sales commissions (8% of sales) Depreciation on equipment and fixtures Store rant 102.000 por month $ 180,000 40,000 20,000 26.000 ZTJU OTUS Tarym Operating costs: Salaries fixed Sales commissions (8% of sales) Depreciation on equipment and fixtures Store rent ($3,000 per month) Other operating costs Operating income (loss) $ 180,000 40,000 20,000 36,000 50,000 326,000 $ (51,000)