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please help me with requirement 4 Uie Medical Sapply is a retaler of home medical equipenent. Last yeac, Ulie's sales revenues totaled $6,400,000. Tctal expenses
please help me with requirement 4
Uie Medical Sapply is a retaler of home medical equipenent. Last yeac, Ulie's sales revenues totaled $6,400,000. Tctal expenses were $2,000,000.08 this amount, approxmately $1,792,000 were variable, while the remainder were fxed. Sinoe Ulite's offers thousands of diflerent products, its managers preler to calcuigte the breakeven point in terms of sales dellars rather than units. Read the teevirements. Requirement 1. What is Uule's current coperating income? Begin by identhying the formula to compute the operating incorme Sales teverve - _ - Varable expenses = Operabing income. The opeeating income is Requirement 2. What is Ulie's conertution margin ratio? Begin by laentifing the formula to compute the contrbution margin raso. Contributionmargin * Hiles reverive Contrbuton margin ralo: (Enthe the radio as a whole percent.) The conktibution margin rato is Requirement 3. What is the compery's breakeven point in sales dollars? (Hint. The contrbution margin ratio calculated in Requirement 2 is akeaty weighted by the company's actual sales mic) Begin by identifyeng the tormala to compute the breakeren point in wales dolars: Requinement 2. What is Ulie's contribution margin ratio? Begin by identifing the formula to compute the contribution margin ratio: Contrbution margin + Sales revenue = Contribution margin ritio (Enter the rafo as a whole percent) The contributon margin ratio is Requiremont 3. What is the compery's breakeven point in sales dollars? (Hint: The contribution margin mato calculated in Requirnent 2 is already weighted by the companys actual sales mix). Begin by ioentitying the formula lo compute the beeakeven point in sales dollars (. Fixed expenses + Operating inosme ) + Contribution margin rato: = Breakeven sales in dolars (Round your answer ip to the nearest whole dolac) The breakeven point in sules dollars is Requirement 4. Ube's sop mansgement is deciling whebter lo anbark on a $240,000 adveriting campaign. The marioting firm has projecled annual sales volume to ncrase by 16% as a resut of If Uite endians on this advetieing campuign, sales cevenuen and variable costs wil W. which wal cause the contrbution margen ws by . However ficed oonts aid the adverising Requirements 1. What is Ullie's current operating income? 2. What is Ullie's contribution margin ratio? 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.) 4. Ullie's top management is deciding whether to embark on a $240,000 advertising campaign. The marketing firm has projected annual sales volume to increase by 16% 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? idvertising campaign, sales revenue and variable costs will by margin to by \%. However, fixed costs will by Step by Step Solution
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