Ronald Medical Supply is a retailer of home medical equipment. Last year, Ronald's sales revenues totaled $6,500,000. Total expenses were $2,700,000. Of this amount, approximately $1,560,000 were variable, while the remainder were fixed. Since Ronald's offers thousands of different products, its managers prefer to calculate the breakeven point in terms of sales dollars rather than units. Read the requirements. Requirement 1. What is Ronald's current operating income? Begin by identifying the formula to compute the operating income. The operating income is Requirement 2. What is Ronald's contribution margin ratio? Begin by identifying the formula to compute the contribution margin ratio. = Operating income Contribution margin ratio (Enter the ratio as a whole percent.) The contribution margin ratio is %. Requirement 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.) Begin by identifying the formula to compute the breakeven point in sales dollars. (Round your answer up to the nearest whole dollar.) Breakeven sales in dollars The breakeven point in sales dollars is Requirement 4. Ronald's top management is deciding whether to embark on a $200,000 advertising campaign. The marketing firm has projected annual sales volume to increase by 12% 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? If Ronald embarks on this advertising campaign, sales revenue and variable costs will will cause the contribution margin by %, which to by %. However, fixed costs will by due to the advertising. What effect would this advertising campaign have on Ronald's annual operating income? The effect would be operating income of