Requirements 1. What is Scott's current operating income? (Prepare a contribution margin format income statement.) 2. What is Scott's contribution margin ratio? 3. What is Scott's break-even point in sales dollars? (Hint: The contribution margin ratio calculated in requirement 2 is already weighted by Scott's actual sales mix.) 4. Scott'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 18% as a result of this campaign. Assuming that the projections are correct, what effect would this advertising campaign have on Scott's annual operating income? Scotr's Sporting Goods is a retailer of sporting equipment Last year, Scotr's sales revenves totallod 55,500,000. Total expenses were 52,700,000. Or this amount. approximately $1,560,000 were variable, while the remainder were foxed Since Soot's Sporting Goods offers thousaids of diflerent products, its managars prefer to calculate the breakioven point in terms of sales dollars rather than inits: Requirement 1. What is Scotrs Spocting. Goods' curtent operating income? (Prepare a contribution imasgin tormat income statement) Complete the contrbubon margin income statement. (Enter losses with a minus sign or parentheses.) Scotr Sporting Goods is a retalcr of sporting equpment. Last yoar, Scotts sales reverues iotalled 55,500,000. Total oxpenses wero $2,700,000, Cl this amount. approximately St 560,000 wore varable, whie the itmainder were faed Since Scotrs Sporting Goods offers theusands of different products, its managers peefer to caicuiate the break-even point in tertis of sales dolars rather than unts. Requirement 2. What is Scomis coctntuson magn tatie? Begin by aderitying the formula to cornpule the conintituon margin ratio The contrautwon margin radio is (Round your answer to two decimal places.) Sootr's Sporting Goods is a retailer of sporting equipment. Last year, Scott's saies revenues totalled $5,500,000. Total expenses were $2,700,000. Of this amount. approxomately $1,560,000 were variable, while the remainder were fixed. Since Scotls Sporting Goods offers thousands of diffecent products, its managers profer to calculate the break-ewen point in terms of sales doilars rather than units. Requirement 3. What is Soott's broak-even point in salos dollars? (Hint: The contribution margan ratio calculated in requirement 2 is already weighted by Scotts actual sales mix ) Begin by identifying the formula to compute the break-even point in sales dollars The break-even point in sales doltart is ? (Round your answer up to the nearest whole dollar.) Requirement 4. Scotrs top managernent is deciding whether to ernbark on a $260.000 advertising campaign. The marketing firm has projected annual sales volume to increase by 18% as a reful of this campaign. Assurming that the propections are correct what effect would this advertising campaign have on Scotr's annual operating income? If Scott's embarks on this advertising campaign, sales revenue and variable costs will by 5, which will cause the contribution margin to by. 14. Food costs will by 4 due to the advertising campaigh Scotfs Sporting Goods is a retailer of sporting equipment Last year, Scott's sales revenwes totalled $5,500,000. Total expenses were $2,700. 000 . Or this amount. approximately $1,500,000 were varible, while the remainder were fixed Since Scotr's Sporting Goods oflots housands of ditferent products, is managera preter to calcusate the beeak-even point in terms of sales dollars rather than units The break-even point in sales dolars is I (Round your answer up to the nearest whole dollar,) Requirement 4 . Scotrs 109 management is deciding whether to embark on it 5260,000 advetising campaign. The markebng frm has progected anrual aaies artual oporating incornet? if Scotts embarks on this advertsing campaign, sabs revenue and vanable costs will by Which wit cakse the contribubion marpin to tyd due to the atverting campaign What effect would this advertising campaign have on Scott's annual operating incomo? The effect would be operating income of 4