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Ronald Medical Supply is a retailer of home medical equipment. Last yeac, Ronald's sales revenues tocaled $6,100,000. Total expenses were $2,590,000.0 or this amount, approwimately
Ronald Medical Supply is a retailer of home medical equipment. Last yeac, Ronald's sales revenues tocaled $6,100,000. Total expenses were $2,590,000.0 or this amount, approwimately $1,342,000 were variable, while the remainder were foxed. Since Ronald's otlers thousands of different products, its managers prefer to calculate the breakeven point in terms of sales dollars rather than units: Read the cequitements. Requirement 1. What is Ronald's current operating income? Begin by identifing the formula to compule the operating income. Operasing income Requirements 1. What is Ronalos current cperating income? 2. What is Ronald's contritution margin ratio? 3. What is the companys breakeven point in sales doliars? (Wint The contribution margin rabo calculated in Requirement 2 is already weighted by the comparpys actual sales mix.) 4. Ronald's lop management is deciding whether to embark on a $200.000 advertising campaign. The marketing firm has peojected annual sales volume to increase by 18% as a tesult of this campaign. Assuming that the projections are correct, what effect would this advertising campaign have on the companys annual operating income
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