Terry Medical Supply is a retailor of home medical equipment. Last year, Terry's sales revenues totaled $6,500,000. Total oxpenses ware $2,700,000. Of this arrount, approximately $1,560,000 were variable, while the remainder were fixed. Since Terty's offers thousands of different producto, its managers pretec to cazcuiate the breakeven point in terms of sales dollars rather than units. Read the requirements- Requirement 1. What is Terry's current operating income? Begin by identifying the formula to compute the operating income. Sales revenue - Fixed expenses - Vaniable expenses. = Operating incomo The operating income is Requirement 2. What is Terry's contribution margin ratio? Begin by identifying the formula to compute the contribution margin ratio. Requirement 3. What is the compary/s breakevon point in sales dollars? (hint The contribution margin ratio calculated in Requirement 2 is alroidy wighted by the company's actual salos mix.) Begin by identifying the formula to compute the breakeven point in sades dollars. Pporating income + Fixed exponses Contrifution matgin rabo = Breakeven sales in dollars (Round your answor up to the nearest wholo dolar:) The breakeven point in sales dollars is Requirement 4. Torry's lop managoment is dociding whother to embark on a $200,000 advertising campaign. The marketing firm has projected annual salos volume to increase by 10% as a result of this campaign. Assuming that the propections are correct. What eflect would this advertising campaign hawe on the company's annuai operating income? If Terry embarks on this advertising campaign, sales reverve and variablo costs wit nse by 19. which Will cause the contribution margin to \%. However. fixed costs wil rise by the artuneticinn Requirements 1. What is Terry's current operating income? 2. What is Terry'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. Terry'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 10% as a result of this campaign. Assuming that the projections are correct, what effect would this advertising campaign have on the company's