omework: Chapter 3 core: 0 of 1 pt 9 of 9 (3 complete) HW Score: 33.33%, 3 of 9 3-35 (similar to) Question Help McCarthy Men's Clothing's revenues and cost data for 2017 are as follows: (Click the icon to view the data.) Mr. McCarthy, the owner of the store, is unhappy with the operating results. An analysis of other operating costs reveals that it includes $20,000 variable costs, which vary with sales volume, and $10,000 (fixed) costs. Read the requirements Requirement 1. Compute the contribution margin of MoCarthy Men's Clothing, Determine the formula to calculate the contribution margin, then enter the amounts in the formula to compute the contribution margin of McCarthy Men's Clothing, Contribution margin * Requirements 1. Compute the contribution margin of McCarthy Men's Clothing 2. Compute the contribution margin percentage 3. Mr. McCarthy estimates that he can increase units sold, and hence revenues by 25% by incurring additional advertising costs of $11,000. Calculate the Impact of the additional advertising costs on operating Income 4. What other actions can Mr. McCarthy take to improve operating income? Print Done ? Choose HT Clear All Check Answer nd cost data for 2017 are as follows: includes $2 su fixe i Data Table putio $ Revenues 500,000 200,000 nargin of Mc ne co 300,000 Cost of goods sold (all variable costs) Gross margin Operating costs: Salaries fixed Sales commissions (11% of sales) Depreciation on equipment and fixtures Store rent ($4,500 per month) $ 190,000 55,000 14,000 54,000 30,000 343,000 $ (43,000) Other operating costs Operating income (loss) Print Done