Ullie's Sporting Goods is a retailer of sporting equipment. Last year, Ullie's sales revenues totalled $5,600,000. Total expenses were $2,300,000. Of this amount, approximately 51,320,000 were variable, while the remainder were fixed. Since Ullie's Sporting Goods offers thousands of different products, its managers prefer to calculate the break-even point in terms of sales dollars rather than units. Requirements Requirement 1. What is Ullie's Sporting Goods' current operating income? (Prepare a contribution margin format income statement.) Complete the contribution margin income statement. (Enter losses with a minus sign or parentheses.) Ullie's Sporting Goods - X Contribution Margin Income Statement Requirements For the Year Ended December 31 Sales revenue 1. What is Ullie's current operating income? (Prepare a contribution margin format income statement.) Less: Variable expenses 2. What is Ullie's contribution margin ratio? Contribution margin 3. What is Ullie's break-even point in sales dollars? (Hint: The contribution margin Less: Fixed expenses ratio calculated in requirement 2 is already weighted by Ullie's actual sales mix) Operating income (loss) 4. Ullie's top management is deciding whether to embark on a $250,000 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 Ullie's annual operating income? Print Done