Scott Medical Supply is a tetailer of home modical equipenent. Last year, Scotfs tabes tevenues totaled 56,590,000. Total eqpenses were $2, 700,000. Of this aniount, approsimately 51.560,000 were variable, while the remainder were fixed Stice Scolrs offers thousands of sifferent products, its managers prafor fo calculate the breakeven point in terins of sales dollars rather than wits: Read the recuitemonts Requirements 1. What is Scott's current operating income? 2. What is Scott'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. Scott's top management is deciding whether to embark on a $220,000 advertising campaign. The marketing firm has projected annual sales volume to increase by 20% 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