QUESTION 3 (25 MARKS) Saleh Men's Clothing's revenues and cost data for 2019 are as follows: RM500,000 250,000 250,000 Revenues Cost of goods sold Gross margin Operating costs: Salaries fixed RM160,000 Sales commissions (11% of sales) 55,000 Depreciation of equipment and fixtures 15,000 Store rent (RM4,000 per month) 48,000 Other operating costs 40,000 Operating income (loss) 318,000 RM(68,000) En Saleh, the owner of the store, is unhappy with the operating results. An analysis of other operat-ing costs reveals that it includes RM35,000 variable costs, which vary with sales volume, and RM5,000 (fixed) costs. Required: (a) Compute the contribution margin of Saleh Men's Clothing. (5 marks) (CLO3:PLO2:C2) (b) Compute the contribution margin percentage. (2 marks) (CLO3:PLO2:C2) (c) Encik Saleh estimates that he can increase units sold, and hence revenues by 20% by incurring additional advertising costs of RM12,000. Show the impact of the additional advertising costs on operating income. (8 marks) (CLO3:PLO2:C3) (d) Suggest other actions Encik Saleh can take to improve operating income. (10 marks) (CLO3:PLO2:C6)